Vontobel acquires PE portfolio from Lombard Odier


Vontobel has completed the acquisition of the US-based private clients portfolio from Lombard Odier.

It would be recalled that acquisition was was announced on October 19, 2018.

Vontobel said it looks to optimally complement its organic growth in Wealth Management and in the business with US clients. They will be served by the wholly owned and SEC-registered subsidiary Vontobel Swiss Wealth Advisors AG (VSWA), which has client relationship management teams in New York, Geneva and Zurich.

In addition to being a SEC-registered investment advisor, VSWA has Exempt International Advisor status in the Canadian provinces of Alberta, British Columbia, Nova Scotia, Ontario and Quebec. VSWA develops solutions for globally diversified wealth management for US investors and Canadian permitted clients.

In the course of the transaction, VSWA has gained two additional experienced relationship managers, who are joining VSWA from Lombard Odier.

A total of more than CHF 730 million of assets under management have been transferred to Vontobel as a result of the transaction. In addition to wealth management clients, VSWA has taken over all of the brokerage private clients of Lombard Odier who wished to switch from their previous brokerage mandate to an advisory or wealth management relationship as part of the transaction. In total, Vontobel now manages around CHF 4.5 billion of assets for North American Wealth Management clients (Wealth Management and EAM).

Lombard Odier and Vontobel have also entered into a cooperation agreement under which Lombard Odier will recommend VSWA as the preferred partner for private clients based in the US seeking a highly qualified, SEC-registered Swiss wealth management solution.

“The acquisition of the US-based private clients portfolio of Lombard Odier gives us the opportunity to further expand the basis for our organic growth in the world’s largest wealth management market. The positive responses from clients in recent months are confirmation that the acquisition of the US-based private clients portfolio from Lombard Odier is the right decision. We are especially pleased that many former brokerage clients have decided in favor of the investment advisory offering and expertise of an internationally active Swiss wealth manager,” stated Georg Schubiger, Head of Vontobel Wealth Management.

The acquisition was fully financed by Vontobel using own funds. With 18.9% at December 31, 2018, Vontobel continues to have a Tier 1 capital ratio that significantly exceeds regulatory requirements.

The company said the acquisition should already generate a positive profit contribution for Vontobel Wealth Management in 2019.

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