Information on the Target

Banque Pâris Bertrand Sturdza (the “Bank”) is an independent private bank based in Geneva and Luxembourg, established in May 2009. Since its inception, the Bank has demonstrated remarkable growth, achieving an average annual increase of 35% in its assets under management (AuM), which have reached CHF 5.3 billion (approximately US $5.4 billion) as of June 2018. The Bank's client base comprises over 400 high-net-worth individuals, family offices, and institutional clients primarily located in Switzerland and Europe. The Bank has received multiple accolades, including recognition as the best domestic Swiss private bank in 2017 (WealthBriefing Swiss Awards) and as the Private Bank of the Year for institutional clients in Switzerland (The European Global Banking and Finance Awards).

Industry Overview

The Swiss private banking sector is reputed for its high standards and excellence in wealth management services, attracting both domestic and international clients. Switzerland remains a leading global hub for private banking, largely due to its political stability, robust financial regulatory framework, and the prestige associated with its banking expertise. The regulatory oversight by institutions like FINMA ensures that banks adhere to stringent compliance guidelines, boosting investor confidence.

In recent years, the industry has seen significant shifts, with banks increasingly focusing on customized investment solutions tailored to meet the unique needs of today's affluent clientele. This is reflective of broader global trends, where personalization in financial services is becoming a key factor in client retention and satisfaction. Notably, the demand for independent investment advice has surged, driven by clients seeking unbiased opinions divorced from potential conflicts of interest.

Moreover, the growth trajectory of private banks in Switzerland is expected to continue as high-net-worth individuals seek innovative banking solutions amidst changing economic conditions. The increasing complexity of investment opportunities, along with a diversified range of asset classes, positions Swiss private banks favorably to adapt and thrive.

While challenges such as intensified competition and evolving client expectations exist, banks that can leverage their expertise and partnership potential, like Banque Pâris Bertrand Sturdza, may capitalize on emerging opportunities for growth and expansion.

The Rationale Behind the Deal

Investcorp, a global provider of alternative investment products, has strategically invested in Banque Pâris Bertrand Sturdza to support the Bank's ambitions for growth and service enhancement. This partnership aligns with Investcorp's overarching strategy of establishing partnerships that augment its existing client offerings and expand its international footprint. The investment not only facilitates the Bank's geographic expansion plans but also enriches Investcorp's capabilities by allowing its clients access to independent investment advice provided by Banque Pâris Bertrand.

This investment marks a significant milestone in Investcorp’s objective to reach $50 billion in AuM over the medium term, following previous acquisitions aimed at diversifying its investment portfolio.

Information About the Investor

Investcorp boasts over 35 years of experience in direct investments across Europe and the US, specializing in private equity, real estate, and alternative investments. The firm has established a strong track record and relationship with a diverse range of institutional and private investors, positioning it as a credible partner in the investment landscape.

With a focus on strategic growth, Investcorp's decision to invest in Banque Pâris Bertrand Sturdza stems from its ability to leverage its extensive industry knowledge and existing networks. The synergies created from this partnership are expected to facilitate enhanced service offerings and access to high-quality investment opportunities for both institutions.

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This investment by Investcorp is viewed as a favorable move for both parties. By collaborating with Banque Pâris Bertrand, Investcorp gains a foothold in the high-demand private banking sector, which is particularly attractive given Switzerland's reputation for excellence in wealth management. The Bank's proven growth trajectory and client-centric approach herald considerable potential for expansion and enhancement of service offerings.

From the Bank's perspective, the alliance with Investcorp introduces new private shareholders that could inject not only capital but also strategic advice and market connections. This could accelerate its growth and reinforce its market position as a leading private bank.

Moreover, the ongoing independent operational structure of Banque Pâris Bertrand ensures that it can continue its commitment to high-quality service delivery without disruption, providing reassurance to its clients. The strategic partnership hence appears to well position both Investcorp and the Bank for successful cooperative growth.

Overall, this investment represents a well-timed opportunity amid the evolving private banking milieu, poised to yield substantial benefits while aligning with both entities' long-term strategic goals.

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