Swiss Private Bank Buys Clariden Leu (Europe)

Tom Burroughes

4 October 2012

Swiss wealth management boutique Falcon Private Bank has agreed to acquire Clariden Leu (Europe), the wholly owned subsidiary of Credit Suisse Group that is based in London. The deal, the cost of which was not disclosed, is the latest in a run of wealth management merger and acquisition deals in recent weeks.

Clariden Leu (Europe) offers wealth and asset management services to private clients in the key markets Eastern Europe, Middle East and Africa and other emerging markets.

Subject to legal and regulatory approvals, the closing is expected in the first quarter of 2013, Falcon Private Bank said in a statement today.

Falcon Private Bank is owned by Aabar Investments PJS, a company that is 95 per cent owned by the government of Abu Dhabi.

"This acquisition brings us one decisive step forward in our strategic ambition to become a leading Swiss Private Banking boutique focusing on emerging markets. We look forward to broadening our global footprint with London as one of the world's major financial centers and expanding our horizons together with our new colleagues" Eduardo Leemann, chief executive of Falcon Private Bank, said.

"We foresee to keep the successful business model and existing custodial arrangements of Clariden Leu (Europe), which has positioned itself as a leading wealth manager for high and ultra high net worth clients in its target markets. Apart from changing to a new owner and a new name, Clariden Leu (Europe) will remain an independent asset manager" Eduardo Leemann said.

There have been a number of wealth management M&A deals in recent weeks, suggesting that some firms are eager to spin off units they consider to be non-core while others are building scale in an environment of tight margins.

The purchase, if agreed, comes weeks after Bank of America Merrill Lynch sold its non-US wealth management business to Switzerland’s Julius Baer, while Deutsche Bank in September has agreed to sell its private bank unit BHF Bank to financial services group RHJ International.

"The sale of Clariden Leu (Europe) Ltd. to the Swiss wealth management boutique Falcon Private Bank ensures the best possible continuity for its clients and employees. It marks one of the final steps of the successful integration of Clariden Leu into Credit Suisse. On behalf of Credit Suisse, I wish the entire team every success and all the best for the future" said Erich Pfister, chairman of the board of directors of Clariden Leu (Europe) and head of Market Area UK/International for private banking iin Western Europe at Zurich-listed Credit Suisse.

Clariden Leu (Europe) Ltd. (formerly Clariden Leu Asset Management UK) had ith assets under management of more than SFr2 billion as of August 31, 2012 and 57 employees, including 22 relationship managers and 10 investment professionals.

UBS acted as financial advisor on this transaction to Falcon Private Bank.