M and A
EFG Acquires in Spain, Switzerland
Zurich-headquartered private bank and asset manager EFG International has bought 72 per cent of Madrid-based A&G Group from its management team. The remaining 28 per cent will continue to be owned by senior management and key employees. Subject to regulatory approval, the transaction is expected to complete during the first quarter of 2008. Terms are not being disclosed.
A&G is a private wealth manager that provides advisory services to high net worth individuals, encompassing estate planning, investments, brokerage, insurance and pensions. It also caters to select institutional clients in the areas of portfolio management and third party fund sales. Its 61 employees including 21 client relationship officers manage around €2.5 billion ($3.7 billion) of which the majority relates to HNW individuals.
Alberto Rodriguez-Fraile is the founder of the business and its chief executive; he will continue in this capacity. The other members of the senior team will remain in place and will continue to be shareholders.
Lonnie Howell, chief executive of EFG International, said: “We have ambitious plans for Spain, and the addition of A&G will accelerate our local development in ways that are highly significant, both qualitatively and quantitatively.”
EFG International has also bought On Finance, based in Lugano. Subject to regulatory approval, the transaction is expected to complete during the first quarter of 2008. Again, terms are not being disclosed.
On Finance is a financial services boutique, specialising in the origination and distribution of structured products and financial advisory services. It focuses on independent investment managers and family offices. Founded in 2000 by Stefano Pezzoli and Franco Maranesi, it has five employees and handles clients’ assets of SFr750 million ($672 million).
The two founders will remain in place and will support EFG International as it looks to build a stronger wealth management presence in Lugano and the surrounding area.
It is hoped that the acquisition will provide EFG International with scope to offer a wider range of asset management solutions to independent asset managers and family offices. It also serves as a catalyst for entering the private wealth space out of Lugano, building on the activities of EFG Bank in other parts of Switzerland.