Zurich-based independent asset manager Lakefield Partners has taken on two of the founding partners of fellow boutique group Edrofin Asset Management.
The move was confirmed to Citywire Switzerland by one of the partners at Lakefield, Bruno Verstraete, who said newcomers Paul-André Schütz and Andreas Sidler will bring with them around CHF 300 million in client assets.
Edrofin Asset Management, which was founded in Zurich in 1989, will remain as a separate legal entity. However, all employees and partners of the firm will move over to Lakefield Partners.
This group will now have CHF 850 million of assets in discretionary mandates.
Verstraete said there was no official merger and the old company is maintained as a safety net for the incoming partners.
He said: ‘When you have more assets you have better negotiating power when dealing with custodian banks for example. This is good for our clients as well as it helps to bring the costs down.’
Schütz and Sidler will contribute their relationship management expertise to Lakefield Partners and expand its coverage to the new market of Germany.
Commenting on the move, Schütz said Lakefield Partners complements client-driven solutions of Edrofin Asset Management.
‘Furthermore, as a FINMA-supervised entity, Lakefield has put a lot of effort into preparing for the regulatory challenges that face our industry and has invested substantially in the development of their state-of-the-art technology infrastructure,’ Sidler added.
Verstraete says it is important to have similar thinking and values when integrating new partners into the firm, which is the case with Schütz and Sidler.
Lakefield Partners itself was founded as a result of three partners Bruno Verstraete, Vinicio Marsiaj and Matthias Hug integrating their firms - Nautilus Invest, Highgate Wealth Management and Hug Invest.
The firm invests in third party funds for its discretionary mandates, however also has six in-house investment strategies.
There are three equity funds (Lakefield Swiss Large Cap CHF, Lakefield Swiss Mid & Small Cap CHF, Lakefield Dynamic World Equity USD;), a multi-asset fund (Lakefield Dynamic Global Core USD), a bond fund (Lakefield Dynamic Global Bond USD) and an Aalternative Ucits strategy (Lakefield Swiss Long/Short Equity CHF).