BSI, the Swiss private bank which has been put on the auction block by Italian insurer Generali, has moved into the competitive sector for ultra-high net worth money, typically ranging from $20m upwards, with a new offshoot.
Its venture is called Patrimony 1873. Managed by Agostino Ferrazzini, the firm, based in Lugano, has just obtained a securities trading licence from the Swiss Financial Market Supervisory Authority (FINMA).
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Patrimony 1873 is described by BSI as an "independent competency centre aimed at sophisticated clients who require protection and management for their complex, internationally diversified assets.
"It offers specialised asset management, consolidated reporting and global risk management services for private and institutional clients, such as investment funds, pension funds and family offices."
Strong 1H results
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By GlobalDataBSI itself reported a strong performance in the first half of 2012, in an upbeat statement which must help the chances of a successful sale of the bank by Generali, which is undergoing a deep restructuring of its businesses.
Inflows of net new money rose 7% to CHF2.7bn ($2.8bn) as all regions made a positive contribution to this result, it said.
Assets under management stood at CHF81.5bn, up 4.9% compared with the end of 2011. Net profit jumped 32.5% and gross profit 9.4% over first-half 2011. Generali has appointed JP Morgan to sell BSI, at a price tag of around 2bn.
Baer VS Raiffeisen bid
Bank Julius Baer and rival Raiffeisen Group, owner of a chunk of Bank Vontobel, were seen as potential bidders for BSI.
Julius Baer Group’s bid to buy the non-American operations of Merrill Lynch Wealth Management will have shelved these plans in BSI. Although the Baer bid is still subject to regulatory approval.
Rome reports suggest that Generali may also be talking to several large sovereign wealth funds, including the Singapore government, about substantial investment in BSI.
