Credit Suisse Private Banking Set To Acquire UK's JO Hambro Investment Management

Lisa Ugur, Tax-news.com, London

18 October 2000

Credit Suisse Private Banking, the private banking arm of Credit Suisse Group, announced yesterday that it is in "exclusive negotiations" to acquire JO Hambro Investment Management Ltd (JOHIM), the UK investment manager catering for high net worth individuals. Terms of the proposed deal were not disclosed.

According to Credit Suisse, if the deal goes ahead JOHIM will retain its own name and offices in St James Square, London, and will operate as an individual entity under the umbrella of Credit Suisse Private Banking. JOHIM is wholly owned by interests of the Hambro family and the directors of the company. Clients typically have portfolios in excess of £1m and include private individuals and family groups, family offices, charities, and specialist investment institutions, all of whom have access to discretionary investment management and specialised investment funds. JOHIM currently has client assets under management of approximately £1.5bn.

Credit Suisse said yesterday that the acquisition "further strengthens Credit Suisse Private Banking's position as a pre-eminent global private banking operation and complements its long-established private banking activities in the UK."

Credit Suisse Private Banking's CEO Oswald J Grübel said of the deal: I am very pleased that JOHIM has elected to join forces with us. They are a first-class team, and I am confident that they will find us a most supportive parent for the ambitious further growth they are pursuing.'

Chairman of JOHIM, Richard Hambro, commented: 'This is highly positive for our clients and for our people. While maintaining our uniqueness and our tried and tested approach, we will be able to draw on the support and the resources of Credit Suisse Private Banking to further expand our position with high net worth clients.'

The announcement of the takeover of JOHIM is a further sign that banks are trying to target the growing numbers of wealthy Europeans, although most are concentrating on targeting the 'mass affluent' who would traditionally not have been able to use private banks. Earlier this year Credit Suisse announced its plans for an online bank offering services to people who can place at least 50,000 euros under management - not the same group of investors as targeted by JOHIM.

Other recent private banking launches include Merrill Lynch and HSBC, who announced earlier this year that they plan to establish an online bank for the mass affluent which is expected to open by the end of 2000, and Royal Bank of Scotland who said it was launching NatWest Private Banking offering wealth management and banking services for those with more than £75,000 to invest.

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