By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Swiss financial group has sold its 85 per cent majority stake in Nassau-based Private Investment Bank (PIB), conceding that it “might no longer be the best owner” for the institution.
Banque Cramer & Cie, a wholly-owned subsidiary of Norinvest Holding, confirmed late on Tuesday that it had agreed to sell PIB’s majority ownership to a consortium called IXE Capital Bahamas.
The latter’s members include IXE Holding, a family-owned Swiss group involved in the private equity and commodity trading markets; IPG Securities Asset Management SA, another Swiss financial services firm; and TR4 Holding, headquartered in the same European nation.
Norinvest and Banque Cramer & Cie indicated that their decision to sell Private Investment Bank (PIB) was driven by the rapidly changing global financial services landscape, especially in private wealth management.
That is the focus of their Bahamian subsidiary, which is based in Devonshire House on Queen Street in downtown Nassau. And the sellers also indicated that the Bahamas’ core markets, which they see as North and Latin America, are no longer priorities for them.
Marco J. Netzer, Banque Cramer & Cie’s chairman, said: “The wealth management landscape is evolving at an unprecedented pace. The future of the Bahamas as a financial centre will almost inevitably be associated with Northern and Latin America.”
Mr Netzer, who is also and vice-chairman for Norinvest and Private Investment Bank, said: “While we felt that Banque Cramer & Cie might no longer be the best owner for PIB, we were committed to finding a solid partner, which can provide PIB with healthy development prospects and, at the same time, safeguard PIB’s independence to the benefit of PIB’s existing and very loyal client base. The transaction seems like a perfect fit.”
Carlos Molina, a partner with IPG Securities Asset Management, and who will act as IXE Capital Bahamas’ chief executive, said they saw Private Investment Bank as an operator that would “fill the gap” left by larger financial services institutions in the private wealth management space.
“We are excited about the new opportunities that will be captured as a result of this partnership,” he said in a statement.
“This initiative will create operational efficiencies and will bring the focus back on our high net worth individual clients, so as to fill the gap left by large financial institutions.”
The Private Investment Bank sale again shows how the Bahamian financial services industry is being impacted by global consolidation and trends, as institutions assess their strategies and ‘reasons for being’, including which jurisdictions they want to operate from.
Both sides acknowledged that the deal requires regulatory approval from the Central Bank of the Bahamas, and have agreed not to disclose the purchase price.
Banque Cramer & Cie, which has owned Private Investment Bank since May 15, 2009, will retain a seat on its Board of Directors, while Roger Dürig remains the as chief executive.
Private Investment Bank was initially called Banque Worms when it was established in the Bahamas, then as Demachy Worms, prior to being given its current name following another transaction.
Comments
banker 7 years, 7 months ago
Here is the subtext: The remaining Bahamian business for wealth management is no longer as cosmopolitan and international as it once was.
Many wealth management firms have sold their books of business, because the only worthwhile Bahamian clientele are from Latin America where there is still an air of Wild West in the management of wealth in regards to tax authorities. The screws are tighter with FATCA and various OECD/EUROZONE initiatives in the international milieu and with the Americans/Canadians. So you have more and more firms chasing Latin American money where the well has not run dry yet.
Wealth management paradigms are changing as we speak.
bogart 7 years, 7 months ago
Former Prime Minister Hon. Hubert Ingraham in recent press article on banking said it is only a matter of time. Foreign counties are trying to shake loose their citizens overseas funds. Local authorities need to do more especially in areas of correspondent banks, de-risking and more support for local customers who face a one sided battle when they have challenges with the local banks. High fees and costs such as the$10 to cash a cheque or $1 fee to withdraw $20 from the ATM etcetc and Central Bank reluctance in getting involved on behalf of account holders does not bode well on the global arena. Market forces should prevail but not one sided.
sealice 7 years, 7 months ago
this sounds like he's trying to pull a PGC and shuffle around saying your economy is worst then stagnant it keeps getting downgraded ...... what future do any foreign banks have here???? not much
banker 7 years, 7 months ago
What you say is true. In addition to that, the banking infrastructure is very much outdated, and the old tax haven paradigm of hiding money from the domestic tax man is totally dead.
Ironically, there are real opportunities in commercial and investment banking, but we do not have the skills, the infrastructure, the vision and the access to capital to pursue those opportunities. That ship has sailed long ago.
This was because the PLP thrives on crumb-catching -- fleecing other people with money, instead of empowering Bahamians.
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