Chief Executive Officer
Helping asset managers and investors adapt to a changing landscape
VP Bank (Luxembourg) SA has become a leading service provider to funds with between €20m and €500m in assets, and is now ready to help independent asset managers who are realising that it is easier to run a fund rather than dozens of portfolios, says CEO Thomas Steiger. Interview.
How is asset management changing today?
In many ways! External asset managers today must adapt to a market environment that changes at high speed: the end of traditional banking secrecy, the emergence of new business models, a generational change. The main result is a struggle to achieve critical mass. You cannot survive today if you are too small.
How is VP Bank adapting to this new landscape?
VP Bank group was founded in 1956 as a private bank and bank for intermediaries. Right from the start the intermediaries segment has been strategically important and has enabled us to build established partnerships. It is natural for us to help external asset managers that are overwhelmed by new regulations and other requirements. We allow them to focus on their core business – raising and managing funds – in order to remain competitive with limited resources. To ensure the best possible service to the end-client, we offer an extended e-banking platform specifically developed for their needs, as well as providing training, research, cross-border and compliance expertise as well as investment oversight.
What new opportunities do you identify?
I see a very interesting convergence between asset management, private banking and investment funds. Luxembourg is leveraging its strong local network of fund professionals to attract family offices and international entrepreneurs looking for a professional and tax-compliant investment structure. Meanwhile, external asset managers are realising that it is easier to run a fund rather than dozens of portfolios, and many of them are looking for comprehensive solutions from a single provider.
What capabilities can you offer clients?
VP Bank Luxembourg, as one of the leading service providers to funds with between €20m and €500m in assets, is uniquely positioned to become their trusted partner. Our subsidiary, VP Fund Solutions (Luxembourg), offers a one-stop shop Management Company service. On the banking side, we provide custody and execute the transactions on a global basis for UCITS as well as private equity and real estate funds. Our medium size, excellent rating, stable core shareholders and strong balance sheet enable us to attract clients looking for a reliable long-term partner. We also consider possible acquisitions: for example, our absorption of the private banking and funds businesses of HSBC Trinkaus & Burkhardt (International) strengthened us considerably and also added a team serving Asian clients.
Facts & Figures
Place of birth: Muri (Switzerland)
Children: 2 daughters
Languages: German, English, French
Hobbies: Golf, Travelling
Cities: San Francisco, London, Zurich
Place: Ocean view from a peaceful terrace
Restaurants: Le Jardin Gourmand (Hesperange), La Vieille Porte (Sierck-les-Bains), Belga Queen (Brussels)
Music: Electric Light Orchestra
Artists: Alberto Giacometti, Annie Leibovitz,
Niki de Saint Phalle, Zaha Hadid