Italy's leading private bank is buying CBP Quilvest, one of the last private banks in Luxembourg, founded in 2006 by several entrepreneurs, including Marc Hoffmann and Norbert Becker.
Fideuram--Intesa Sanpaolo Private Banking (Fideuram-ISPB) will acquire the entire Compagnie de Banque Privée Quilvest (CBPQ), for an undisclosed amount.
"Fideuram is the private banking subsidiary of Intesa Sanpaolo, the third largest bank in the eurozone and the sixth largest bank in Europe, including Switzerland and the UK," said Marc Hoffmann, CEO of CBP Quilvest.
It currently has 150 employees and €7 billion in assets under management. But once the takeover is finalised and the regulatory authorities have given the green light, it should increase to €9 billion in assets under management, probably in the first half of 2022.
"We tried to do external growth and acquisitions, but at our level, it was extremely complicated," admits the manager. Faced with increased regulatory pressure, persistently low interest rates and technological challenges, "the current shareholder base was no longer able to support the bank's growth, so we started looking for a new shareholder," he adds.
Marc Hoffmann has given his assurance that he will remain in his position as director from the grand duchy, despite the total change in shareholding. As for co-founder Norbert Becker, he is stepping down as chairman of the board of directors, but retains other mandates, including that of director of Intesa Sanpaolo Holding International.
The Luxembourg anchor remains, but on the other hand, we have to look elsewhere.
Luxembourg after Switzerland
"The Luxembourg anchor remains, but on the other hand, we have to look elsewhere” says Hoffmann. Fideuram is the leader in its market, we certainly have a lot to learn from them," he stresses. He cites the Italian bank's partnerships in asset management and its extensive portfolio of investment products.
Fideuram-ISPB has €326.9bn in assets under administration and is the leading private bank in Italy. With this acquisition, it aims to create a new hub in the European Union, alongside the recently acquired Reyl & Cie in Switzerland, which will be fully integrated by the end of this year.
"The transaction confirms the development objectives of our division in the international markets, where we already have approximately €42bn in assets under management," said Tommaso Corcos, CEO of Fideuram-Intesa Sanpaolo Private Banking, in a statement.
The origins of CBP Quilvest date back to 2006. "It was the best decision I ever made in my life, even if the road was different from what I had imagined", Marc Hoffmann confides. After the financial crisis of 2008, he announced at the end of 2010 the merger of his private bank with Quilvest Wealth Management, enabling the structure to penetrate the Swiss and French markets, and then the Belgian market in 2015.
This story was first published in French on Paperjam. It has been translated and edited for Delano.