Swiss diversified banking group REYL & Cie has acquired a 40% interest in Geneva-based independent asset manager 1875 Finance.
Financial terms of the deal were not shared.
1875 Finance co-founders Olivier Bizon, Paul Kohler, Aksel Azrac and Jacques-Antoine Ormond will jointly retain a 60% stake in the firm.
The transaction is expected further bolster the firm’s independent multi-custody and wealth management franchise.
Following the deal, Fideuram – Intesa Sanpaolo Private Banking (ISPB) REYL will enter into strategic partnership with 1875 Finance, becoming the preferred partner for 1875 Finance and its clients across a range of products and solutions.
This partnership, subject to approval by FINMA and other regulatory bodies, will cover wealth management, asset management, corporate advisory & structuring, and asset services.
It will enable both parties to play an active role in the accelerating consolidation of the Swiss independent asset management space.
Furthermore, the tie-up will enable REYL to fortify its private banking activities in Switzerland and internationally.
REYL Group CEO François Reyl remarked that the transaction sets a precedent in the ongoing consolidation of the Swiss financial sector.
“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,” he said.
In June this year, the ECB and FINMA both approved the strategic partnership between Fideuram – ISPB and REYL & Cie.
In June last year, the firm introduced Fund Representation Solutions within its Asset Services business line.
Earlier last year, the Swiss banking group acted as lead arranger and co-bookrunner on a $60m Luxembourg bond issuance.