Former Coutts International boss Alexander Classen changed lanes last year, moving to family office Bedrock. He tells how the European wealth manager wants to expand its 10 billion Swiss francs in assets.
Well-known veteran Swiss banker Alexander Classen made a splash when he left private banking and last year joined Bedrock, a Geneva-, Monaco- and London-based family office founded in 2004.
Bedrock has grown from a handful of employees to nearly 100 in recent years, and now manages $10 billion in assets including through its BRT tech unit.
Classen's hire is a signal that the family office is ready to expand: his last job was Chief Executive of Coutts International, and he previously worked for Goldman Sachs and Morgan Stanley. The Geneva native spent four years in Singapore as Pictet's general manager for Asia until 1999.
Bedrock is a minnow in comparison to those international firms, but seeking diversification in a mix of wealth management and family office services, niche asset management, and tech expertise for other small wealth managers.
Bedrock in Zurich
Classen has just opened an office in Zurich for Bedrock, on a quiet tree-lined Zurich street between the lake and the city's financial center. Several works by French street artist JR are waiting to be hung in the rooms where he and several new colleagues hopes to soon be welcoming ultra-wealthy families.
Classen tells finews.com he has enjoyed the move from huge multi-billion private bank within an international institute to a small boutique.
«When you’re a bank executive, you get paid in part in the stock of your firm, and it’s not always a foregone conclusion to have a significant impact – even as a senior executive. Whereas the impact here is immediate,» he says.
He tells finews.com why he is looking anew at the U.S., what Bedrock's Asian expansion plans are and what sort of acquisitions he would consider to boost the boutique wealth manager.
Alex Classen, where has Bedrock been recruiting?
Since beginning of the year, we’ve hired five relationship managers in Monaco, London, Geneva, and Zurich. We have a healthy pipeline, so I expect our recruiting efforts to carry on into 2018 and beyond. We’ve also hired a head of sales to run a four-person asset management sales team out of London, and we’ve hired for (back-office software unit) BRT.
Family office bankers are paid a share of the business they bring in. Does this make it easier to hire?
If you’re driven and have good traction on your clients, this is a very attractive proposition. You need to be very comfortable in making that switch and confident that your clients will eventually follow you.
«Of 60 applicants, I hired five people»
To hire the five we did, I saw perhaps 60 people. At the end of the day, some people fall back on a certain cushion of safety maybe they have come to appreciate too much. That’s always the tricky bit. On the other hand, there is no cap on what you can earn as a family office banker.
Bedrock has focused on organic growth. Would you consider acquisitions?
We have already looked at couple potential acquisitions for our wealth management and family office business.
«Quite a few Swiss wealth managers under 1 billion Sfr mulling an exit»
There are quite a few sub-1 billion Swiss franc (in assets under management) players in Switzerland who have either cost pressure or succession-related reasons to consider such an exit.
What sort of financial firepower do you have for deals?
We don’t give figures, but we do have the means towards an ambitious growth program for the next few years. We won’t make big acquisitions, but we have a sound growth and investment plan we can draw on.
Does Bedrock have any plans to expand outside of its four European locations?
We still have so much of a market opportunity in front of us in existing locations. That being said we will certainly keep an eye on opportunities in other regions we don’t actively cover, like Asia.
«We could open in the U.S.»
Other markets including the U.S. might come to fore. Historically Bedrock has operated under the premise that it is extremely important to find the right strategic partner and people wherever we go.
Why the U.S.?
We have a fairly significant Latin America client base. And we’re increasingly hearing about the desire to book in the U.S. and not necessarily in Switzerland. Let’s face it, we will have full transparency through the automatic exchange of information very soon.
«Why not book closer to home?»
Some clients feel it might be better booking closer to home. For example in Miami, where many Latin American clients have second home, through a U.S. custodian.
Could you envisage opening up shop in the States?
I wouldn’t exclude that over the mid- to long-term. The U.S. is an interesting market because there is a fairly vibrant family office scene there. The regulatory environment has become more conducive to firms like ourselves establishing a beachhead there.
Tell me more about Asia.
We explored some cooperation opportunities, but we’re still in a fairly early stage. Those would probably not require a local presence, at least not at first. I think priority will be given to deepening penetration in our existing locations.
- Page 1 of 2
- Next >>
