A Geneva-based private bank and independent asset manager are coming together to create a new business model and achieve opportunities for growth.
Bank Reyl, which has been controlled by Italian banking group Intesa Sanpaolo since May, and independent asset manager 1875 Finance, have agreed a strategic partnership by which the bank will acquire 40% of 1875 Finance, Bank Reyl said in a press release Thursday.
Co-founders Olivier Bizon, Paul Kohler, Aksel Azrac and Jacques-Antoine Ormond will retain control of 1875 Finance with a 60 percent stake and remain fully committed to its long-term development.
Leveraging Strengths
Under the deal Reyl will act as preferred partner for 1875 Finance and its clients across a broad spectrum of products and solutions in wealth management, asset management, corporate advisory & structuring and asset services.
The bank will leverage 1875 Finance’s leading position in the Swiss independent asset management market as well as its diversified private and institutional client base. The transaction aims to strengthen 1875 Finance’s independent multi-custody and wealth management franchise further.
1875 Finance has 11 billion Swiss francs ($12.2 billion) of assets under management, the statement said.
The Reyl Group manages assets in excess of 19.5 billion francs, or 25 billion including Intesa Sanpaolo.
The partnership is subject to regulatory approval.
Setting precedent
«This transaction sets a precedent in the ongoing consolidation of the sector and shows that banks and independent asset managers can establish innovative partnerships where both parties benefit from multiple growth opportunities for their respective client base without relinquishing their business model, management autonomy or franchise. We expect to build a lasting business relationship and to create powerful synergies between the two entities,» Reyl Group CEO François Reyl said.
Acquisitions?
CEO of 1875 Finance Paul Kohler said the company would have the ability to grow both organically and through acquisitions both in Switzerland and abroad, with the support of its new shareholder.
Zurich Office
The Geneva-based asset manager, which also acts as a multi-family office, has a Zurich office, from where it recently lost managing partner Filippo Taddei. Sources say the company is struggling to to achieve critical mass in German-speaking Switzerland.
However, a spokesman for 1875 Finance told finews.com the Zurich branch was just a front office, while the back-office work was done in Geneva. As a result, the company was not dependent on a critical mass.
The Zurich office is profitable, currently employing 10 people and managing around 1 billion francs in customer funds, the spokesman said.
