The new unit plays to a theme in wealth management that has been going on for some time: increasing interest by UHNW clients in bypassing traditional funds and channels to get directly into business investment and earn additional yield.
Julius Baer is launching a new offering for direct private investments, pitched at its wealthiest clients interested in private equity, private debt, and other unlisted or illiquid assets. From 1 October this year, the unit will be led by former UBS senior figure Giuseppe De Filippo.
The new business line will offer access to private market transactions across all of the Swiss bank’s regions via professionals in its major booking centres. The unit will complement Julius Baer’s product range and will be embedded in its markets division, it said in a statement. Several other external and internal professionals will join De Filippo. They will contribute expertise in structuring, sourcing, and distributing transactions, it continued.
De Filippo has had various roles at UBS, most recently leadership of the direct investments group and the corporate finance group, globally. Prior to this, he worked as an associate principal with McKinsey & Company in Zurich, Singapore, and Shanghai from 1999 to 2006. He holds a master’s degree in physics from the University of Pisa and a PhD in physics from the University of Copenhagen.
“I am delighted to announce the hiring of Giuseppe and a team of proven experts to form this newly-created unit - Direct Private Investments. With their background, their experience, and international network, Giuseppe and the new team are perfectly equipped to successfully roll out these important services, expanding the capabilities of our Markets division and, thus, our relevance for UHNW clients,” Dieter Enkelmann, chief financial officer at Julius Baer, said.
The Zurich-listed bank said this step follows its strategic announcement in February 2020, that it will invest more in its range of solutions and expertise.
“Direct investments are one of the fastest growing asset classes for UHNW clients and family offices seeking diversification, asymmetric returns, and to tap into emerging megatrends,” it added.