Family Office
Euro boutiques need bold strategies to compete
Research firm thinks small wealth managers should think hard
about ownership structure. European boutique firms have to be
especially crafty if they hope to compete with established
private banks in providing wealth management services to
high-net-worth families and individuals, says Research and
Markets, a Dublin-based clearinghouse for third-party business
analysis.
The main problem is that small firms have less cash on hand than
their big-name rivals. That limits their ability to develop their
businesses and ride out bad patches caused by depressed markets
or external shocks such as terrorism or war.
"Small independent wealth managers are far from doomed, but
equally do not have universally good prospects," says Research
and Markets, touting a $2,400 report that examines organizational
size as a factor in providing wealth management services. "Those
that fail to act to develop their future market position will
suffer, but those that take a proactive approach to shaping their
strategy and business model have a range of attractive options to
pursue."
In that light, a boutique firm's choice of ownership structure
can determine the range of strategic options it opens up for
itself. That choice, in turn, can have an impact on the
product-and-service proposition that a boutique can realistically
deliver to its clients.
London-based Datamonitor's interrogatively titled report Will
Organizational Size Be a Critical Success Factor in Providing
Wealth Management Services to HNW Individuals? claims to help
small wealth managers to identify their place "in the competitive
landscape for wealth management services in Europe." It outlines
the strengths, weaknesses, opportunities that typical European
boutique wealth managers face, and uses case studies to describe
ownership structures and business initiatives adopted by wealth
industry players of different sizes.
Firms highlighted in the case studies include Ruffer, C. Hoare &
Co., Tilney Investment Management and KBL Group European Private
Bankers.
Click here to learn more about the report. -FWR
