Private Equity Holding is to break free of its parent, Swiss private bank, Vontobel, as a result of a breakdown in trust between the two parties. Private Equity Holdings’ chief executive Dominik Meyer and deputy CEO Ulrich Geilinger, who were appointed in March, were both executives at the former parent.
In light of irregularities found in a review of investments that related to the previous management of Private Equity Holding, the board decided to move from Vontobel to Swiss Life Private Equity Partners AG, which is now the new manager and adviser for the division.
A report documented several cases of misconduct, such as transgression of competencies, negligence of duty of care, as well as incomplete documentation by the former CEO Hans-Peter Bachmann, who left Private Equity Holdings in March.
Most agreements with Vontobel have been terminated, but the group will continue to work with Private Equity Holding and Swiss Life Private Equity to ensure the planned transition and new direction of the group. Vontobel’s future involvement with the group is subject to negotiation.
Private Equity Holdings’ board feels there has been a breakdown of trust in the relationship as a whole due to the problems relating back to the previous management.
Private Equity Holding’s new manager, Swiss Life Private Equity Partners, is the private equity arm of Swiss Life and the exclusive adviser and manager of its initial CHF2 billion private equity investment program. The firm pursues a diversification strategy with regard to fund participation and focuses its direct investments on growth industries.
It is hoped the affiliation between the two entities will open up significant opportunities for future growth, with its broad financial service offering, its global orientation and financial strength.