The Zurich-based investment firm Vontobel announced on Thursday that it will acquire the client portfolio of IHAG Private Bank, which amounts to around 3 billion francs. Vontobel currently manages approximately 100 billion francs in private client assets. 

The acquisition intended to expand Vontobel's business in the DACH region, which includes Germany, Austria, and Switzerland. The firm expects the deal to have an immediate positive impact on the group′s net profit.

The transaction will be financed using Vontobel’s existing capital, and, pending standard closing conditions, it is expected to be completed by the first half of 2025.

Interest Rate Shift as a Trigger

This transaction signals a new wave of consolidation in Swiss private banking. After many wealth management banks posted record results last year thanks to rising interest rates, they are now facing more challenging conditions. Additionally, selling a bank or parts of its assets is no longer taboo for many family-owned institutions.

Under these circumstances, more acquisitions are expected in the coming months. Several private banks are reportedly up for sale, according to industry insiders.

Bank of Anda and Franz-Bührle Families

With this acquisition, Vontobel reinforces its strategic ambition to expand its presence in key markets. IHAG clients will benefit from Vontobel's comprehensive global investment expertise, professional advisory services, and digital capabilities, ensuring a smooth transition, as stated in Thursday's release. Specific details of the transaction remain confidential.

Founded in 1949, IHAG Private Bank is owned by Gratian Anda, a descendant of the late industrialist and arms manufacturer Emil Georg Bührle, who passed away in 1956. Anda reportedly holds about 80 percent of the shares, while his cousin Carol Franz-Bührle owns the remaining 20 percent. The bank is part of the IHFS Holding and holds around 80 employees. Most of them will lose their jobs. 

Involved in Scandals

In recent years, the institution has encountered major challenges, both operational and reputational, leading to multiple reorganizations and changes in leadership. Despite these efforts, success has remained elusive.

Given these difficulties, IHAG has long been viewed as a takeover candidate, with some speculating that the bank might relinquish its license and continue as an independent wealth manager. This could mark the latest chapter in the 75-year history of the firm.