Swiss group acquires stake in local wealth firm

A Swiss private banking group has bought a 51% share in an Aussie wealth firm, as the two form a long-term strategic partnership to expand globally.

EFG International paid $61.2 million for the stake in Shaw and Partners, valuing the company at $120 million. Shaw and Partners has $12 billion in funds under advice while the Swiss group has US $130 billion in assets under management.

Shaw and Partners co-chief executives Earl Evans and Allan Zion will together hold roughly 25% of the 30-year-old firm.

The investment forms a long-term strategic partnership, with the aim of boosting revenues and profits.

"Pipeline projects to bolster revenue and profit include the scaling of a Lombard Loans facility, providing clients with access to international equity research and global corporate mandates and plans to leverage EFG's funds business, specifically the New Capital Funds in an effort to penetrate the Australian pension fund market," Shaw and Partners said.

Additionally, the Aussie firm will work towards a longer-term project of rolling out a private bank offering within Australia, it said.

Evans said: "For more than 30 years, Shaw and Partners has sought to provide clients with the highest-quality investment and wealth management products and advice."

The introduction of EFG marks the next stage of Shaw and Partners, he added.

"EFG has a deep understanding of our industry and brings significant global and operational experience," Evans said.

"With their support, we will be even better equipped to grow the business and enhance the quality of our offerings to Australian retail, high net-worth, corporate and institutional clients."

The transaction is expected to complete by the fourth quarter of FY19 and will see EFG board member Steve Jacobs join Shaw and Partners' board as chair.

"We are excited to partner with Shaw and Partners, a leading wealth management firm with a well-recognised and respected brand, a track record of excellence and a loyal client base. I look forward to working closely with the talented team at Shaw and Partners to support the Company's long-term strategy and next phase of growth," Jacobs said.

Read more: PartnersUSShawAussieAustraliaCompanyEarl EvansEFG InternationalSteve JacobsAllan ZionLombard LoansNew Capital FundsPipeline
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