You have invested heavily in technology, with a budget of around 150 million Swiss francs, notably in Temenos. What is the rationale behind these investments?
Nicolas Mirabaud. – “Until now, we had an in-house platform that was developed internally and updated over time. Several years ago, we began to wonder whether this model was sustainable. When you see the capabilities and resources developed by various technology providers and the speed at which technology is advancing, you realise that you need to call on specialists and aim for a scalable solution. That is why we decided to use an external provider.
We are also mindful of the fact that artificial intelligence will become increasingly prevalent and that blockchain technology will likely play a role in securing certain transactions. We therefore chose Temenos following a standard tender process in order to have a platform capable of evolving over time. Between the time we launched the tender and now, there have been major technological changes, and Temenos is able to keep pace with them.
We use several other suppliers who work in partnership with Temenos, including Wealth Dynamics to manage our CRM. The aim is also to move towards a cloud-based model, which is quite forward-thinking. Indeed, we can see today that many institutions are adopting this model, which reinforces our belief that we are heading in the right direction.
The technology will be rolled out by the end of the year
How far have you got with this roll-out?
Nicolas Mirabaud. – “Our plan is to roll out the entire platform across all our banking operations – not just in Luxembourg or Switzerland, but across the group’s 14 offices – by the end of the year. I would add that these investments are also aimed at enhancing operational efficiency, the security of our transactions and the quality of customer service. They should also enable us to manage data more effectively and meet regulatory requirements, particularly regarding tax reporting and anti-money laundering. The platform must be able to evolve continuously to keep pace with these demands.
In your wealth management and asset management activities, what is your value proposition? How do you position yourselves against other players in the market?
Nicolas Mirabaud. – “We are a family-owned group celebrating our 207th anniversary this year. I represent the seventh generation, and the family remains the majority shareholder whilst also playing an active role in the executive team. This is a central part of our value proposition: we are a family serving other families. There is a very strong alignment of interests since, on a personal level, for example, the bulk of my assets is invested in the group. Our approach is both traditional and innovative. Traditional because we have been doing the same job for over 200 years: managing our clients’ money and advising them. Innovative because we are constantly seeking new solutions and new investment ideas.
We haven’t spread ourselves too thin: we focus on two core areas: wealth management for private clients and asset management for institutional investors.
Our size enables us to maintain close ties with our clients: they have direct access to their bankers, specialists, senior management and even the owners. However, we also operate in around ten countries. This international presence allows us to maintain a global perspective on the markets and to support families whose interests are often transnational.
We accept clients with assets of one million euros or more, which enables us to support many entrepreneurs who are often in the process of selling their businesses.
Émilie Serrurier. – “What also sets us apart is our positioning. We are a bit like a large family office: a structure on a human scale, but with a fully-fledged banking platform behind us. We also have a lower entry threshold than some other major Swiss private banks. We accept clients with assets starting from one million euros, which enables us to support many entrepreneurs who are often in the process of selling their businesses. For a long time, they have invested solely in their business, and we become the first private bank to support them in managing their financial assets. We often get involved well in advance of the sale of their business. We also work with partners (group companies or external firms) who advise them on disposal transactions in order to structure their assets and prepare for the family handover.
Does this positioning attract more local entrepreneurs?
Émilie Serrurier. – “Yes, to some extent. The European platform is based in Luxembourg, but we also have operations in the UK, France and Spain. In each country, we maintain close ties with our local clients. The investment strategy is defined at group level, but each country can adapt it to meet the specific needs of its clients.
Club deals for experienced investors
You mentioned a unique offering, particularly in the area of private equity. Could you elaborate?
Émilie Serrurier. – “The Mirabaud family has been investing in the real economy for a very long time. This isn’t something we’ve only recently discovered because private equity has become fashionable. We therefore also offer this type of investment to our clients, including some smaller clients, in various forms, whether through a semi-liquid evergreen strategy providing access to leading private equity managers or through direct investments.
How does it work?
Nicolas Mirabaud. – “We mainly organise club deals. We have built up a network that gives us access to a number of opportunities. Before proposing these investments, we analyse their suitability: how they fit into portfolio management, their compatibility with local regulations, and their tax implications. We then offer them to specific families or clients who have the appetite and profile for this type of investment. These are not products we make available to everyone.
Our aim remains to build robust portfolios that deliver strong performance over the long term. Above all, clients are looking for consistency in service and performance, but they also appreciate having access to investment opportunities they cannot find elsewhere.
The Mirabaud Academy: supporting the next generation
There is a lot of talk about passing on wealth from one generation to the next. How do you manage the expectations of the younger generations?
Nicolas Mirabaud. – “First and foremost, we need to get to know our clients and their children, and that takes time. The younger generations sometimes have different expectations, particularly when it comes to ESG issues or technology. We therefore tailor our portfolios accordingly. For example, some clients refuse to invest in oil companies at all, whilst others believe they have a role to play in the energy transition. We adapt to the values and needs of each family.”
Émilie Serrurier. – “More and more clients are asking us to support their children. They don’t necessarily want their children to know the exact value of their assets straight away, but they want to gradually familiarise them with investing. We also organise get-togethers for these young clients so that they can chat with one another.”
Nicolas Mirabaud. – “We have also launched the Mirabaud Academy. Every year, children of our clients come to spend a few days at the bank to learn about what we do, meet the teams and understand how wealth management works. It also helps to show that a firm with a history stretching back over 200 years can still remain modern. We like to tell them that we are a 200-year-old start-up.”
What are your current exclusion criteria when it comes to investment? And how do you approach, for example, the defence sector, which has become a major issue in Europe?
Nicolas Mirabaud. – “We have excluded certain sectors such as tobacco, pornography and companies with significant exposure to coal. As regards armaments, we exclude companies involved in non-conventional weapons. It is true that the issue of defence has become more sensitive following recent geopolitical developments. We also hosted the latest roundtable on the subject organised by the PRI, bringing together our peers in Switzerland. In short, certain investments in this sector may now form part of our investment universe, provided they meet our ESG eligibility criteria.”
Growth of over 10%
How do you see Luxembourg’s development as a financial centre?
Nicolas Mirabaud. – “For us, Europe is a key growth area. Luxembourg plays a central role as it serves as our European hub and booking centre. The Luxembourg financial centre enjoys a high degree of political, economic and social stability. In an unstable global climate, this is a major asset. The main challenge remains recruiting talent, as the Luxembourg labour market is highly competitive.
Émilie Serrurier. – “Luxembourg remains, nevertheless, very business-friendly. For example, the impatriation schemes help attract foreign talent. This can be a key driver for expanding into certain markets.
You have a presence in Europe, Switzerland, the Middle East and South America. Why not expand into Asia?
Nicolas Mirabaud. – “Today, the group manages around €35 billion in assets and employs approximately 700 people. We do not have a presence in Asia and serve very few Asian clients. We already have three major hubs: Switzerland, Europe and Dubai. We also have a presence in Canada and representative offices in South America. We believe these markets already offer plenty of opportunities. Expanding into Asia would require significant resources, and we prefer to focus our efforts on the regions where we are already established.
Your annual results will be published following this interview. Can you share a few trends with us already?
Émilie Serrurier. – “In Europe, we are seeing revenue growth of around 10%.”
Nicolas Mirabaud. – “The group remains in very good financial health. We are currently in an investment phase: we are recruiting, strengthening our teams and investing in our technology platform. As Emilie mentioned, we are seeing positive inflows in Europe from our private clients and independent wealth managers, thanks in particular to the support we provide to entrepreneurs and families during liquidity events, such as following the sale of a business or real estate assets. For us, this is the best proof that our approach and the quality of our management meet our clients’ expectations.”
