The management buy-out carried out with Almha Capital is reshaping Octogone’s trajectory without altering its DNA. The group intends to continue its development whilst preserving its independence, its entrepreneurial culture and its long-term approach to working with international families. Here, Ivan Peruffo discusses the group’s ambitions, the growth drivers of its independent model and the developments currently shaping the wealth management sector.
In your view, having previously worked at Pictet, what does a firm like Octogone now expect from the custodian banks with which it works?
I spent thirteen years at Pictet Asset Management, much of that time heading up the independent asset managers’ business in French-speaking Switzerland. That experience gave me a clear understanding of what the relationship between an EAM and its custodians can – and must – be.
Today, the expectations of a group such as Octogone go far beyond the scope of a simple banking relationship. They centre on the ability to support clients in an increasingly complex environment.
In this regard, the quality of operational execution is an absolute prerequisite. We are a group with offices in Geneva, Miami, Nassau, Panama and Dubai, serving clients across the Middle East, Latin America and Europe. In such a context, a custodian’s ability to operate with ease in a multi-jurisdictional environment and to master its specificities is not a competitive advantage but a prerequisite.
Added to this is a detailed understanding of the EAM model. An independent asset manager is not simply a retail client with higher volumes. They are a fiduciary partner, with their own requirements and their own systems. They need the bank to adapt to their way of working, rather than the other way round.
Finally, in an environment characterised by rapidly evolving regulatory frameworks and increasing operational constraints, predictability has become a key factor. We are looking for partners capable of a long-term commitment, with a stable and consistent approach, rather than institutions that review their terms and conditions every six months.
How would you define Octogone’s identity today?
The group was founded in Geneva in 1995. It has built itself around a positioning that remains unique within the industry, characterised by a strong commitment to independence, a genuinely international scope and a high degree of specialisation in serving clients with complex needs, who are often less well served by the standardised models of the major players.
Independence is our heritage. We recently reaffirmed this through the management buy-out carried out with Almha Capital. The group’s international reach is a reality, with five offices in Geneva, Miami, Nassau, Panama and Dubai, eighty staff members, fifteen nationalities and ten languages spoken on a daily basis. This diversity is a major asset in supporting families and entrepreneurs with international backgrounds.
Finally, Octogone began in the world of alternative investment before gradually expanding its expertise into traditional asset management, direct investments and indirect strategies. This dual culture is now one of our key strengths.
In a nutshell, Octogone has been built on values that have never changed. Independence, integrity, flexibility and loyalty have been the group’s cornerstones since its inception and continue to guide its development today.
What is your vision for Octogone over the next five years?
I see Octogone as a leading player in its core markets of Switzerland, the Middle East and Latin America. We can double in size in a disciplined manner, without losing what makes us unique: independence, client proximity and the ability to manage complex wealth across multiple jurisdictions.
We currently manage some 5 billion Swiss francs in assets. Our growth trajectory will be driven by three complementary factors. The first is organic growth, particularly in the Gulf, where regional momentum is exceptional, as well as in our offices in the Americas, which are benefiting from strong structural demand. The second is the integration of experienced asset managers who share our entrepreneurial culture. Finally, we will explore targeted acquisitions in the jurisdictions where we are already established.
Beyond the figures, I see above all a group that will have completed its digital and operational transformation, where technology will have freed up time for advisory services and client relationships, and where artificial intelligence will have become a tool to support fund managers rather than a substitute. I also see a group capable of attracting, developing and retaining its young talent by giving them real responsibilities and long-term career prospects. This is a key priority for us, as the transfer and renewal of skills are an integral part of our model.
Where do you think it is still possible to create value today in the asset management profession?
Value creation has shifted. In public markets that have become extremely efficient, stock selection remains important, but it is no longer the main driver of performance on its own. In our view, asset allocation remains the key determinant over the long term, as it is based on a comprehensive understanding of market cycles, risks and behaviour.
Quantitative tools, machine learning and artificial intelligence are powerful decision-making aids, but they are still based on the analysis of past data. They cannot replace human judgement when faced with regime shifts or structural changes.
This does not mean that active management has lost its relevance. In an environment characterised by a high degree of index concentration, value lies less in the search for a ‘miracle stock’ than in the ability to identify the best specialists, capable of generating genuine alpha and building more diversified portfolios.
At the same time, wealth management now extends far beyond financial performance alone. International families are seeking comprehensive support that encompasses wealth succession, taxation, governance and coordination across different jurisdictions. It is precisely within this complexity that an independent player such as Octogone can create value, by combining investment expertise, an open architecture and a close relationship with clients.
Finally, the human relationship remains a key differentiating factor. As technology automates some financial services, a deep understanding of a family’s objectives and the ability to support them over the long term are becoming decisive advantages. In wealth management, trust is built over several generations.
How can we work to further enhance the recognition of independent asset managers in Switzerland?
Significant progress has been made, particularly since the entry into force of the LSFin/LEFin and the transition to FINMA regulation. The professional status has been clarified, which is positive for clients, counterparties and the profession as a whole.
Nevertheless, there is still important work to be done. We must collectively do a better job of explaining what sets the independent model apart. An independent asset manager is not a scaled-down version of a bank, but a different model, based on the absence of proprietary products, an open architecture and a stronger alignment with the client’s interests.
The profession must also continue to raise its standards, particularly in terms of continuing professional development, transparency on fees and the quality of reporting. The more demanding it is of itself, the more it will enhance its standing.
Finally, greater visibility has become essential. Swiss asset managers are often discreet by culture, but today’s UHNW clients, particularly those internationally, wish to better understand the structures to which they entrust their assets.
What concrete changes has the arrival of a new shareholder at Octogone brought about?
We have carried out a ‘management buy-out’, led by the former partners of the Octogone group, with the financial and strategic support of Almha Capital, Hareb Al Darmaki’s private investment vehicle. Management thus remains in the hands of the long-standing executives, who are also shareholders. Almha brings growth capital and a long-term strategic partnership. This is exactly the kind of shareholder we were looking for: committed to the long term, respectful of the group’s culture, and capable of supporting our development, particularly in the Middle East, where its presence and network are a real asset.
How does this change in shareholding alter your strategic direction?
It does not change our strategic direction, but it gives us the means to accelerate its implementation. Our priorities remain the same: to double our assets, strengthen our international presence and develop high value-added services, notably supporting families with the organisation, governance and transfer of their wealth. The partnership with Almha simply enables us to pursue these ambitions with greater speed, resources and impact.
This is particularly true of our expansion in the Middle East and our external growth initiatives.
I would, however, like to emphasise one point. This transaction reaffirms Octogone’s independence. It is an MBO, not a takeover. Our culture, our governance and our management principles remain strictly in the hands of our long-standing teams.
Amidst the current wave of consolidation, what models do you see emerging?
We are seeing three archetypes take shape.
Firstly, the integrated platform, where a player acquires several boutique firms, pools support functions whilst preserving a certain degree of autonomy for the management teams. Success depends on the effectiveness of the integration and the ability to retain talent.
Secondly, the federative model, in which fund managers come together under a common structure whilst retaining their brand, client base and investment style. This is a leaner model, but one that generates fewer synergies.
Finally, growth through affiliation, where an independent manager partners with a larger player that provides capital and resources without necessarily acquiring the business in full. This model is particularly suited to addressing the challenges of founder succession.
None of these models is inherently superior. Their suitability depends above all on how well they align with the culture and identity of the firms concerned.
How do you intend to position Octogone within this consolidation trend?
Our positioning is clearly that of a selective consolidator, not a target. The Almha deal has confirmed this, and our operational track record will demonstrate it.
We are looking for teams that share our philosophy, based on independence of mind, client focus and operational rigour. For us, culture will always take precedence over the size of the assets brought in.
Our international presence, from Geneva to Miami, Nassau, Panama and Dubai, brings added value to asset managers who wish to offer their clients greater capabilities whilst retaining their autonomy.