10 Top Swiss Family Office Firms in 2023
Private wealth is one of the cornerstones of the Swiss financial system.
Not for nothing is Switzerland renowned around the world for being the undisputed leader in offshore wealth for the 0.01%.
But who are banks and companies serving these wealthy families - and what are they investing in these days?
An overview…
Who are they?
The names are known. The details not so much.
When it comes to serving the wealthiest families with a Swiss presence, most of the largest and most well-known Swiss banking institutions have a piece of the pie.
Here is a list of the ones who are most active in serving rich families in Switzerland:
Pictet Group - The venerable Geneva group has a reputation for both discretion and innovation. Its investment in Moderna is just one example of excellent decision-making.
Lombard Odier - With a flashy, yet focused “Rethink everything” ad campaign, the Geneva-based bank is also pushing forward-thinking investments - while still serving the interests of “old money.”
UBS Global Family Office Group - The world’s largest wealth manager cannot be left out - and its international reputation makes it one of the first “ports of call” for wealthy families when the look to move assets to Switzerland.
Credit Suisse Family Office Services - Switzerland’s number two bank suffers from a tarnished reputation following the forced merger with UBS - but its expertise has been world-class over the years. Its new owners will be glad for the addition.
Julius Baer Family Office - A major beneficiary of Credit Suisse’s demise, Julius Baer has not only a strong Swiss presence, but a growing franchise for family office services in Asia.
Banque Syz - Despite being significantly smaller than the others listed here, Syz Group has proven innovative and puts a significant emphasis on investment in new fields, including crypto and digital assets.
Mirabaud - Located just around the corner from Paradeplatz, Mirabaud flies below the radar but still manages over CHF 30 billion in assets.
Bordier & Cie - Founded in 1844, the private bank follows the strong example of other wealth managers for families in western Switzerland.
LGT Group - LGT has its home in Liechtenstein, where it serves the princely family of the tiny country - but its reach is much wider.
Edmond de Rothschild - It boasts one of the most recognizable names in private banking - and bills itself as a “bold builder of the future.”
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Where are they investing?
According to UBS, global family offices in 2023 are still (relatively) bullish on equities.
With just over 30% of assets invested in the segment, this surprising result defies logic, especially in a period where equities have seen dramatic losses.
Another key takeaway - a large percentage of family offices have committed funds to private equity (roughly 25%).
As global markets continue to experience uncomfortable volatility and with fewer and fewer innovative firms ready to test the ups and downs of public markets, the only chance for people with money to make more money is to dive into private firms.
Asset allocations at the moment are focused on equities (over 30%) and private equity (25%).
Of the split aimed at so-called “alternative investments” - more than half are focused on fund-of-fund structures as opposed to direct investments.
Interestingly enough - more than 20% plan to increase their allocations to cryptocurrencies and digital assets.
How much do they earn?
It goes without saying that family office service companies do a great business.
And for that they can be - understandably - well-compensated.
KPMG has recently published a detailed report on the compensation structure from family offices. The data comes from over 600 firms and more than 20 direct interviews.
A world of wealth
Despite the many challenges posed by the ongoing fight against inflation and the struggle with rising rates, family office services in Switzerland are still thriving and will remain a strong pillar of the Swiss financial services ecosystem.
While the pandemic and its aftermath have certainly brought new challenges to the financial industry, family offices in Switzerland have adapted quickly and worked to provide their clients with the support and guidance they need during these uncertain times.
Count on the top tier continuing to…be top.