Bahrain-based alternative asset manager Investcorp is set to sell its stake in Swiss private bank Banque Paris Bertrand after it signed a takeover agreement with London-based investment bank Rothschild & Co.
Investcorp, which bought a "significant minority" stake in Banque Paris Bertrand two years ago, said it had "agreed to divest its indirect interest" in the lender alongside other shareholders.
"The transaction is expected to complete in the first half of 2021, subject to regulatory and other customary approvals. The parties have agreed not to disclose the financial terms of the transaction," Investcorp said in a statement to the Bahrain Bourse, where its shares trade.
Banque Paris Bertrand was founded in 2009 by a group of private bankers who wanted to return to offering traditional private banking services, offering wealth management and investment advice to wealthy individuals, family offices and institutional investors. It managed 6.5 billion Swiss francs ($7.36bn) of client assets at the end of November, having achieved 35 per cent annualised growth in assets under management between 2009-19, according to its website.
"After 11 years of exceptional track record and uninterrupted growth, the timing was right to join forces with Rothschild & Co to be better positioned for capturing growth opportunities and for addressing the foreseen increasingly complex regulatory environment in the interest of our clients and our teams," Pierre Paris, founding partner and chairman of Banque Paris Bertrand, said.
Banque Paris Bertrand provided an "excellent strategic fit" with its own wealth management arm, with a similar strategy and client profile, London-based Rothschild said. The deal will grow client assets for its wealth management business in Switzerland to more than 20bn Swiss francs. Overall assets under management in its wealth and asset management businesses stand at €75bn ($91.9bn).
“Our wealth management business has strong footholds across Europe and this acquisition is another step in developing our unique offering," said executive chairman Alexandre de Rothschild. "We are delighted that the Banque Paris Bertrand, an extremely reputable private bank in the important Swiss market, has agreed to join our group.
Investcorp, which has Abu Dhabi's Mubadala Investment Company as its biggest shareholder, had $32.2bn of assets under management at its most recent year end of June 30, a 15 per cent year-on-year increase.