Big changes, which are building up in the Swiss external asset management industry, have already been chronicled by this news service. A recent transaction is unlikely to be the last.

The purchase by Swiss firm Woodman Asset Management of Pentagram Wealth Management, producing a combined business with a footprint in Zurich, Geneva & Lugano, shows the M&A pressures on external asset managers. EAMs are having to adapt to new Swiss regulations that kick in from 2023.

The recently-unveiled deal is a result of “intense cooperation” between the two companies on different projects over the last few years, the firms said in a statement a few days ago. As a result of their combination, Woodman will manage more than SFr3.5 billion ($3.81 billion) of assets under management with a team of 40 people.

“This is a landmark acquisition for our organisation and for the independent wealth management industry in Switzerland. It unlocks substantial value and growth opportunities driven by greater scale, diversity and balance across investment strategies, and geographies,” Patrick Ferrari, CEO of Woodman Asset Management, said. “Our combined strengths will enhance our strategic positioning and long-term growth potential. Woodman will be one of the few independent wealth managers in Switzerland in the three major financial centres.”

Figures in the wealth industry have told WealthBriefing this week (gathering for our annual Swiss awards gala event in Geneva) that such combinations are likely to continue, given the desire by some firms for the scale to handle increased regulatory costs being imposed by FINMA. The Swiss EAM sector is evolving (see examples of features here and here).

Alessandro Sonvico, chief executive and partner of Pentagram Wealth Management, said: “Pentagram Wealth Management’s integration into Woodman represents a fantastic opportunity for further growth in a very competitive environment. The merger will further enhance our position as a leading provider of personalised client services, value-added solutions, and efficient operational support.”

Pentagram was founded in 2005 with offices in Geneva and Lugano. Woodman, which was founded in 2010, has a team in Zug and London catering to individuals and family offices.