Consolidation of Swiss EAMs : Between Real Opportunities and Underestimated Challenges

Since the introduction of the FINMA licensing regime in January 2020, the Swiss external portfolio management (EAM) landscape has undergone profound transformation. The professionalisation of organisational structures and the standardisation of processes have resulted in significantly heightened regulatory and compliance requirements.

Laurent Pellet Limited Partner, Global Head of EAM, Banque Lombard Odier & Cie SA

Philipp Fischer Partner at Lenz & Staehelin

In 2020, FINMA reported 2,041 active EAMs in Switzerland. Today, 1,344 (as of 24 March 2026) have successfully obtained a FINMA licence— even though consolidation is not the primary reason for this change, some discreet mergers have although occured in Switzerland.

This shift is occurring in an already challenging environment: intensifying competition for talent, revenue pressure driven by the rise of passive solutions, and technological transformations requiring substantial investment. Margin compression continues to increase, making the adaptation of business models and the pursuit of operational efficiencies more critical than ever.

These dynamics might leave room for mergers , enabling firms to reach critical size, pool resources, and secure long-term sustainability. Economies of scale — including shared technology platforms or the integration of back- and middle-office functions — play a decisive role. The talent war also contributes: according to Stellar Executive Search (2025), more than 1,000 client advisers will be needed by 2026, a structural challenge that consolidation can partially address.

Consolidation Trends in Europe

Across Europe, consolidation is gaining momentum, fuelled in particular by private equity funds attracted by the sector’s stability and recurring revenues. In France, notable transactions marked 2024–2025: Goldman Sachs Alternatives’ majority investment in Crystal, and PAI Partners’ entry into exclusive negotiations to acquire control of Cyrus. A highly fragmented market, often low levels of leverage, and abundant available capital all support buy‑and‑build strategies.

Switzerland presents a more discreet profile: most transactions involve peer consolidation or sales to banking groups — such as EFG’s acquisition of Banque Cité Gestion or Amadeus Capital’s acquisition of Amasus Investment. Cinerius Partners (Zug), backed by IK Partners and Summit Partners, stands out as an exception with its active buy‑and‑build strategy. Foreign platforms are also seeking a foothold in Switzerland to access the country's renowned wealth management expertise and longstanding relationships with local custodian banks.

Implications for Asset Managers

Despite a dynamic market rich in opportunities, mergers come with frequently underestimated challenges: diverging remuneration models, varying quality of operational and compliance frameworks, differing investment policies and product offerings, heterogeneous client segmentation, alignment between partners, or reliance on key relationship managers.

In practice, M&A negotiations often centre on financial valuation. Yet the value of an EAM lies not only in its client portfolio, but in its ability to transfer and sustain that portfolio over time. Financial due diligence must therefore be complemented by operational and legal due diligence: quality of client data, IT governance, relationships with key service providers, and regulatory compliance — both in Switzerland and in clients’ countries of residence.

Valuation expectations should also be approached with discernment. While some platforms may justify higher multiples due to their potential role as consolidation leaders, smaller firms — often facing client concentration or founder dependency — require a thorough diagnostic assessment of revenue stability, portfolio quality, governance, team alignment, and process standardisation. Valuations based solely on assets under management, sometimes used as a preliminary benchmark, do not withstand a deeper analysis of profitability, asset quality, and the long‑term viability of the operating and commercial model.

On the legal and transactional side, three transaction types can be combined, each carrying specific implications for both clients and key managers:

• Share deal: the buyer acquires all shares of the company. Although this requires extensive due diligence and contractual safeguards, it allows for a straightforward and efficient transaction.
   
• Asset deal: the buyer selects specific assets, which may directly affect the seller’s ability to monetise the full portfolio.
   
• Referral transaction: based on client referrals from the seller, but with reduced certainty regarding the effective transfer of relationships and offering considerable flexibility to the buyer.

In all scenarios, exogenous factors — such as mismatched corporate cultures, incompatible operating models, or reputational considerations — can significantly impact client stability and the retention of key relationship managers post‑transaction. Payment structures such as earn‑outs, clawbacks, deferred payments, or escrow arrangements serve as effective mechanisms to align interests and legally mitigate attrition risks.

In this context, the success of any transaction — whether a sale, merger, or acquisition — depends on each EAM defining its strategy and initiating preparatory work well in advance.

Biographies

Laurent Pellet joined the Bank in 2017 and took responsibility for the Group’s External Asset Managers department in 2018. He began his career at Ferrier Lullin & Cie SA and subsequently held various positions at Banque Julius Baer over more than 20 years. He holds a Degree in Quantitative Wealth Management from HEC Geneva, a Degree in Digital Finance Law from the University of Geneva, and the CWMA.

Philipp Fischer is a partner at Lenz & Staehelin, where he is a member of the Banking and Finance group. For more than 17 years, he has advised financial intermediaries (including banks, insurers, securities firms, collective investment schemes, trustees, and asset managers) on banking and financial law, as well as data protection law.
Philipp serves on the Steering Committee of the CAS Digital Finance Law at the University of Geneva. He is also a member of the Continuing Education Commission of the Geneva Bar Association and the Geneva Bar Examination Commission. In addition, he is Vice-President of the Harvard Law School Association of Europe.