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As ex-Julius Baer boss Boris Collardi adjusts to life as a Pictet partner, what does the star Swiss banker’s move mean for the 213-year-old family partnership?

By Shruti Advani, Guest Contributor finews.asia

The hire of Boris Collardi as a partner at Pictet underscores the two poles of private banking: the Genevan wealth manager stands for the old world of conservative and risk-shy banking. The 43-year-old Collardi stands for aggressive hiring, bold deal-making, and fast growth. Pictet will have to relinquish its tight hold on balance sheet assets if its wants to successfully woo Asia’s wealthy, as finews.asia reported on Wednesday.

The capital conundrum as well as liabilities like a criminal probe in the U.S. over tax evasion were the primary reasons that Pictet abandoned the Swiss-trademarked «banquier privè» model in 2014 in favor of a corporate partnership. This shifts personal liability from the partners pocketbooks into their (ample) equity. The move was seismic for a bank that claims its principles of ownership and succession have not changed since Napoleonic times.

Asian Tie-Up?

Without the constraints of unlimited liability, there are several options for Pictet to expand its balance sheet. It was on Collardi’s watch that Julius Baer bolstered its capital with bond issues in Singapore, the first of its kind for a foreign bank. The Pictet brand is «as good as gold» according to one investment banker who is not engaged by the bank. «Raising funds by floating paper would be no problem at all for an institution as well respected as it is» – it would be a first since Pictet was founded in 1805.

A more aggressive, if unconventional, approach would be to allow yet another outsider – such as a sovereign wealth fund – into the tight circle of manager-owners. One with a pedigree almost as impeccable as Pictet – GIC or Temasek for example – would be a match made in financial heaven.