Standard Chartered, the British bank that makes about two-thirds of its profit in Asia, has paid GBP45 million ($604.27 million) for 20 per cent of Fleming Family & Partners, a European wealth management firm that wants to expand its business to serve Asia's richest families.
The deal opens the door to Asia for Fleming while allowing Standard Chartered to offer its clients top-shelf private banking services.
Fleming was spun off from the investment business of Robert Fleming Holdings when it was sold to Chase Manhattan Bank in 2000.
Fleming, with US$8 billion under management, plans to open offices in Hong Kong and Singapore next year to help families across Asia and the Middle East manage their millions. Its target is families with more than US$100 million to invest.
'We'd even extend our services to paying the bills. If a family wants to move to a different country, we'd help them find a property, deal with logistics, help them acquire the property, look at the ownership structure, look at their tax status, right down to giving them advice on how they educate their children, how they deal with their wealth as new generations come in,' Fleming chief executive Gavin Rochussen said.
The global wealth management market of people with more than US$1 million is worth US$30 trillion and is growing at 6.5 per cent a year.