Expansion plans mark new chapter for Reyl

Buying up small wealth management firms will form a key part of the job of former UBS heavyweight Louay Al-Doory in his new role as head of global business development at Geneva-based family office turned private bank Reyl & Cie.

In his previous role as head of investment funds at the private banking arm of UBS in Zurich, Mr Al-Doory was responsible for selecting and packaging products worth SFr250bn (€195bn), so moving to a boutique bank running just SFr4bn, serviced by 100 staff, means he clearly has big ambitions for the niche name.

He will be looking at strategic joint ventures in key growth areas such as Asia, the Middle East and Latin America, as well as acquiring major “anchor” clients in the asset management business. His mission is to at least double assets within the first three years.

“I am not looking to join a sleeping boutique and plod along, happy to just be adding 10 per cent per annum to the assets. I am looking to open a new chapter,” states the jovial but combative Mr Al-Doory, used to the acronym-heavy language and mentality of the BHAGS (Big Hairy Audacious Goals) on which he was reared at UBS.

His story is that after leaving the Swiss giant, intent on setting up his own shop, he casually “dropped into” the Reyl offices on the banks of Lake Geneva to pay his respects to the father-and-son team of Dominique, who formed the family group in 1973, and François Reyl, now chief executive. It soon became apparent that the trio shared mutual aims and ambitions in wealth management. “Also, it’s much better to have a SFr4bn than a zero starting base,” he concedes.

One of Mr Al-Doory’s first aims is to add to existing offices in Geneva, Luxembourg, Paris and Singapore, by opening an operation in Zurich, potentially adding 30 new recruits, capitalising on the banking licence awarded to the group by the Swiss Financial Market Supervisory Authority in November 2010.

“If you are in Switzerland and don’t have an office in Zurich, it’s like fighting in a boxing match with just one hand,” admits Mr Al-Doory.

The bulk of his time will be spent looking for family offices with between SFr250m to SFr1bn in managed assets, “complimentary acquisitions we can swallow and assimilate”. At least three candidates have been identified so far, with the UK and France named as key hunting grounds alongside the bank’s Swiss homeland.

He is emphatic that Reyl will not fall into the Eastern trap currently ensnaring other private banks. “Expanding in the Middle East and Asia has become the mantra of every private bank, as onshore and European business development is not so easy,” warns Mr Al-Doory. “Asia is overbanked, underserved and the brand remains king.”

Reyl will be targeting Singapore, where the group currently has five staff, specifically as a calmer state than much of the continent and described by Mr Al-Doory as the “Switzerland of Asia”. “Singapore is a key hub for us – it is stable, business friendly and able to tap into both China and South-East Asia,” he adds.

But this expansion will clearly bring in management problems of its own. “It is one thing dealing with 50 people,” sighs Mr Al-Doory “and others challenge speaking to 200 plus in multiple locations,” reflecting on the gradual expansion of endless cross-departmental committees and bureaucracy, which led to his eventual frustration with UBS, despite the quality of the individuals he was working with.

Central to his proposed expansion will be the Reyl asset management expertise, particularly its systematic approach to running long-only equities. “It’s a bit like the Carlsberg ad: it’s probably the best fund manager in the world,” smiles Mr Al-Doory. “At UBS, I worked with 300 fund houses, and have seen every kind of product created by a fund manager you can imagine. But this little shop has produced something which no other fund manager has managed to do – consistent alpha.”

Any acquisition in the UK would be in this vein, acquiring a manufacturing unit which can generate returns, rather than acquiring clients, as Mr Al-Doory hopes to do in markets like Switzerland and Asia.

Mr Al-Doory refuses to admit that he is attacking the market on too many fronts, re-iterating that his ideal scenario for 2011 would be to purchase three small companies, establish a Zurich base and add SFr1.5bn in assets, while making some “selective” client acquisitions.

“An organisation like ours does not want to bite off more than it can chew,” he warns.

Louay Al-Doory, Reyl & Cie