This press release caught my eye.
A bank is investing in, but not acquiring, a privately owned multi-family office. Interesting!
We do not know if there are any other underlying reasons for this deal, which have not been reported, but it will be interesting to see how the relationship between the two develops and whether it brings in new clients.
We know that many multi-family offices struggle to build scalability and improve their cost to income ratio against an environment of tighter regulations and increased competition.
Will we see more deals like it in the future?
CMBC International, a wholly-owned subsidiary of China Minsheng Bank, has invested in Hong Kong-based multi-family office, CARRET Private. The move will enable CARRET Private to develop its wealth management business, especially in relation to what the two firms describe as a “mutually beneficial core product offering to [Chinese] UHNW investors”. Said Kenneth Ho, managing partner and one of the founders of CARRET Private: “We believe, that together with CMBCI, we can form a partnership to develop high end wealth management for Chinese clientele.” Said Kenneth Ho, managing partner and one of the founders of CARRET Private: “We believe, that together with CMBCI, we can form a partnership to develop high end wealth management for Chinese clientele.”
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