In a sector undergoing major restructuring, Eli Mizrahi analyses the forces reshaping the Swiss market, against a backdrop of consolidation, tighter regulation and rapid technological change. In his view, independence is no longer merely a selling point but a genuine business model, underpinned by a strong identity and the ability to navigate complex environments.
In your view, what are the main driving forces reshaping the EAM sector in Switzerland?
Three dynamics are at work, and they are all healthy. Firstly, consolidation. What is disappearing are organisations lacking identity and a robust business model. The market is naturally weeding itself out. Secondly, regulation. FINMA has raised the bar, which is painful in the short term but enhances the credibility of the entire profession in the long term. And finally, technology – not as an existential threat, but as a catalyst for change. It lays bare those EAMs whose sole added value was access to products. Those that survive are the ones with real depth, both intellectual and relational.
Which models do you think are the most sustainable in the medium term?
Those with an identity that cannot be copied. Independence is not just a selling point; it is a structural framework. A sustainable EAM is a firm with a distinct geographical or thematic specialism, a genuinely free multi-custody architecture, and a network of relationships that cannot be transferred to a platform. What will disappear is the shallow ‘one-size-fits-all’ model. What will endure is the boutique, backed by a clientele that has chosen it precisely because it is unlike any other.
How should the value proposition of Swiss EAMs evolve in the face of integrated platforms and large groups?
The big banks sell architecture disguised as advice. Platforms sell automation disguised as a relationship. We, on the other hand, sell something neither of them can produce: structurally exclusive loyalty. No hidden conflicts of interest, no investment quotas to meet by the end of the quarter. In a world where trust has become scarce, this is a massive competitive advantage – provided we stop taking it for granted and demonstrate it in every interaction.
What do EAMs need to strengthen themselves in the long term?
Two things that nobody likes to hear. Firstly, the courage to tell their own story. Swiss discretion may be a virtue, but it cannot be an excuse for strategic silence. Many EAMs excel at their craft yet remain invisible in their market. This is a deadly paradox. Secondly, collective intelligence, in the sense that the sector remains pathologically fragmented. Not that everything needs to be merged, but targeted alliances focusing on technology, compliance and access to private markets would enable them to exert greater influence vis-à-vis the institutions. Competition between EAMs is legitimate. Turning in on oneself is suicidal.
How do you see competition evolving between Switzerland and the major financial hubs of the Middle East and Asia?
The best way for Switzerland to lose this competition would be precisely to play along with it. Dubai is building skyscrapers. Singapore is building hubs. Switzerland, for its part, has built something far rarer: expertise passed down through several generations and a reputation that withstands crises. No financial centre in the world boasts such a concentration of expertise, whether in asset managers, lawyers, tax specialists or structuring experts. It is a unique, organic ecosystem that cannot be imposed by regulation and cannot be replicated in ten years.
Dubai and Singapore have built their appeal on tax advantages and favourable demographic growth. Switzerland relies on a tried-and-tested legal framework, political neutrality that is more than just a slogan, and genuine expertise. It runs much deeper than that. For our Latin American clients, Switzerland remains irreplaceable due to its legal stability, political neutrality and depth of expertise. No emerging hub offers this trio of qualities today.
To what extent is the ability to structure multi-jurisdictional solutions becoming a key differentiating factor?
For anyone working with Latin America, it has become an absolute prerequisite. Our clients’ assets are not held in a single jurisdiction. They have assets in Europe, structures in the United States, and business interests spread across Brazil, Mexico and other Latin American countries. An EAM unable to navigate these jurisdictions – fiscally, legally and structurally – is no longer a global partner. It becomes a provider of partial services in a world that demands a holistic view. Multi-jurisdictional expertise is our natural terrain. It is also what makes our profession so exciting and, quite frankly, irreplaceable.
How would you define Targa’s positioning today?
What matters above all are our clients’ projects and the objectives they wish to achieve. We support an international client base, with particularly recognised expertise in Latin American markets, where we have developed a solid network and an in-depth understanding of local issues over the years.
In an increasingly complex and globalised wealth management environment, we prioritise bespoke approaches over standardised solutions. Our independence allows us to draw on the most relevant expertise and partners for each situation, without being constrained by any particular platform or product range. As a ‘crypto-friendly’ player, we also regard digital assets as a legitimate component of the investment universe when they form part of a coherent strategy.
How do you approach portfolio construction today in a market environment that is more fragmented and less predictable than it has been over the past decade?
The past decade afforded us a dangerous luxury: that of predictable correlation. Low interest rates had numbed our thinking. We bought duration, we reaped returns, and we called it ‘management’. Those days are gone.
Today, every position must stand on its own merits, without relying on macroeconomic crutches. I work with three simultaneous levels of analysis: long-term thematic conviction, tactical positioning on regional cycles, and active currency risk management – which is critical for clients whose liabilities are denominated in pesos, reais or other emerging-market currencies. This three-pronged analytical approach is what distinguishes truly bespoke management from a standard asset allocation simply repackaged to suit the client’s preferences.
What are your ambitions for the coming years?
In recent years, we have invested heavily in building a platform capable of offering independent wealth managers everything they need to focus fully on their clients.
Today, whether in terms of investment, legal and tax advice or support functions, we believe we have achieved the level of expertise and quality we were seeking. This platform enables us to support our growth whilst maintaining the standards of excellence on which our reputation is built.
The next step is to attract even more leading bankers who share our values, our entrepreneurial culture and our vision for the industry. We are convinced that the calibre of the men and women who make up Targa remains our key differentiating factor.
We have created a great working environment, where talented individuals have the resources they need to succeed and where clients’ interests remain at the heart of every decision. It is on this solid foundation that we look forward to the coming years, with great enthusiasm and confidence.
What key growth drivers have you identified to date?
The first is a measured expansion of our target market. The EAM market has long catered to ultra-high-net-worth clients, as if, below a certain threshold, wealth management complexity simply did not exist. This is a misinterpretation. An entrepreneur who has just sold their first business, a senior executive with multi-jurisdictional share options, a self-employed professional beginning to structure their wealth… all require a rigorous, personalised and independent approach. This presents a considerable opportunity for those who know how to adapt their offering without compromising on standards.
The second driver is recruitment. Over the decades, the major institutions have trained private bankers who are truly outstanding professionals. Attracting such talent to an independent firm brings immediate gains in competitiveness, networking and the depth of advice provided.
And the third lever is generational. The new wave of Latin American entrepreneurs is unlike the previous one. They are more mobile, more digitally savvy and more open to alternative asset classes. They expect their asset manager to speak their language, to understand their business models, and to be just as at ease in the boardroom of a mango plantation in São Paulo as they are at a meeting in Geneva.