REYL & Cie (“REYL”), the Swiss banking group part of Fideuram ā?” Intesa Sanpaolo Private Banking (“Fideuram – ISPB”), and independent asset manager 1875 Finance have entered into an agreement whereby REYL will acquire a 40% interest in 1875 Finance Holding (“1875 Finance”)
– The two firms will implement a strategic partnership designed to raise their combined market share in Independent Asset Management (IAM) activities in Switzerland, foster cross-selling opportunities and synergies, and leverage 1875 Finance’s business model to become an active player in the consolidation of the Swiss IAM sector
– The transaction is subject to the approval of FINMA and other relevant regulatory bodies and is expected to complete by the end of 2021
REYL, the Swiss diversified banking group controlled since May 2021 by Fideuram Intesa Sanpaolo Private Banking, and 1875 Finance, a multi-family office and independent asset manager for private and institutional clients headquartered in Geneva, have agreed the terms of a strategic partnership by which REYL will acquire a 40% interest in 1875 Finance. Co-founders Olivier Bizon, Paul Kohler, Aksel Azrac and Jacques-Antoine Ormond will jointly retain control of 1875 Finance with a 60% stake and remain fully committed to the company’s long-term development.
As part of the transaction, REYL and 1875 Finance will enter into a business partnership whereby REYL, backed by Fideuram – ISPB, 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. REYL 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 will bring benefits to both firms in numerous growth areas and will further strengthen 1875 Finance’s independent multi-custody and wealth management franchise.
The partnership, which remains subject to FINMA’s and other regulatory bodies’ approvals, will enable REYL and 1875 Finance to play an active role in the accelerating consolidation of the Swiss Independent Asset Management sector, providing further near-term growth opportunities. It will allow REYL to strengthen its private banking activities in Switzerland and internationally, and to continue to play a meaningful role in the reshaping of the Swiss financial marketplace.
Francois Reyl, REYL Group CEO, said: “We are excited about this strategic partnership with 1875 Finance, an established leader in the Swiss IAM segment with assets under management exceeding CHF 11 billion. This transaction sets a precedent in the ongoing consolidation of the sector and shows that banks and IAM 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. In 1875 Finance we have found a highly compatible partner with a shared entrepreneurial mindset, a first-rate team and common values throughout.”
Paul Kohler, CEO and founding partner of 1875 Finance jointly with Olivier Bizon (Chairman), Aksel Azrac and Jacques-Antoine Ormond, said: “We are delighted to welcome REYL, part of the Intesa Sanpaolo group, as our new shareholder and to add an exciting new chapter to 1875 Finance’s 15-year history. 1875 Finance was already a precursor when it obtained FINMA approval in 2014. Through this groundbreaking partnership, we retain our full open architecture and entrepreneurial business model cherished by our clients. We will also benefit from new processes, products and services to accelerate the development of our core Wealth Management, Family Office and Institutional business lines and to provide enhanced value-add to our clients. 1875 Finance will remain an independent asset manager regulated by FINMA with the ability to grow both organically and via acquisitions in Switzerland and abroad, with the support of our new shareholder.”
REYL Corporate Advisory acted as financial advisor to REYL on the transaction. 1875 Finance was advised by Deloitte. Schellenberg Wittmer acted as legal advisor for both REYL and 1875 Finance.