The merger between the two Swiss institutions opens the door to both organic development and acquisitions in Switzerland and abroad, as Swiss IAM market consolidation continues.

REYL & Cie has acquired a 40 per cent stake in 1875 Finance after Swiss and Luxembourg regulators cleared the previously-announced strategic tie-up between the two Geneva-based firms.

Approval came from Swiss regulator Finma and Luxembourg’s CSSF, REYL & Cie said in a statement yesterday, adding that the strategic partnership will enable both companies to increase their combined market share in the independent wealth management segment in Switzerland. 

The deal, which was announced last August, as reported by this publication, will create transversal revenue and development opportunities for both parties. Both companies intend to play an active role in accelerating the consolidation process of the Swiss independent wealth management sector, offering new growth prospects in the short and medium term, they said.

Through the transaction REYL, the Swiss diversified banking group held in part since May 2021 by Fideuram – Intesa Sanpaolo Private Banking – will be able to strengthen its wealth management activities both in Switzerland and internationally, and continue to play a role in the reshaping of the Swiss financial marketplace.

It will also reinforce multi-family office 1875 Finance’s position as a leading player in the Swiss multi-custodian independent wealth management segment, the statement said. Clients of 1875 Finance will benefit from REYL's business lines which include mergers and acquisitions, structured financing, equity and debt capital market transactions, as well as art financing.

Co-founders of 1875 Finance Olivier Bizon, Paul Kohler, Aksel Azrac and Jacques-Antoine Ormond jointly retain control of 60 per cent of the company and said that they “remain fully committed to its long-term development.”

Consolidation among independent Swiss asset managers has been on the rise in the fragmented sector as banks and IAMs seek credible partners that can add business lines, scalability and stronger customer focus. Rule changes coming into effect this year governing how Finma regulates independent asset managers are also stimulating activity.

"This transaction shows that banks and independent managers can join forces in innovative partnerships without giving up their business model or management autonomy. We expect to build a lasting business relationship and create powerful synergies between the two entities,” François Reyl (pictured), chief executive officer of REYL Group, said.

Principals from 1875 said the new partnership would allow the firm to maintain its open architecture and entrepreneurial business model that clients cherish. "We are delighted to welcome REYL as a new shareholder, as part of an agreement that opens the door to both organic development and acquisitions in Switzerland and abroad,” the founders said.

Last year REYL struck a deal when Milan-based Fideuram-ISPB was cleared to merge its Swiss banking subsidiary Intesa Sanpaolo Private Bank (Suisse) Morval into Reyl. As an affiliate of the Intesa Sanpaolo Group, Fideuram is Italy’s main domestic private bank.

The resulting private banking and wealth management partnership combined around SFr25 billion ($27.8 billion) in client money and established Switzerland as Fideuram’s preferred international private banking hub.