Crafting bespoke wealth management for our clients in Belgium: an interview with Denis Pittet and Geoffroy Vermeire

Article published in L’Echo and De Tijd, 28 November 2024. 

Swiss wealth manager Lombard Odier recently opened an office in Antwerp. It is targeting well-heeled Flemish families, particularly those looking to pass on their wealth, in a shrewd strategy aimed at growing its client base in a key region.

Uitbreidingstraat in Antwerp might lack some of the elegance of a Parisian boulevard but, according to Geoffroy Vermeire, Managing Director of Lombard Odier’s Private Banking activities in Belgium, and Denis Pittet, Lombard Odier Managing Partner, its understated cachet makes it the ideal home for the privately-owned bank’s new Belgian office.

“You can compare us to companies that specialise in fine watches or haute couture,” says Vermeire. “They are boutique firms set apart from the crowd by their expertise. A company like Hermès doesn't just offer handbags in assorted colours and sizes; they also sell high-end riding saddles, for example. We share that approach: we offer standard investment products, but working in an entirely personalised way.”

If you never teach your child that money doesn’t simply grow on trees, you can’t blame them if they squander their cash in later life

The Swiss group, which dates back to the 18th century, targets what is termed the “wealthy” segment of the private banking market, consisting of clients with at least EUR five million to invest.

According to Vermeire and Pittet, more and more of these clients can be found in Flanders – hence the new Antwerp office: “We have taken this step because we are well aware that a large slice of the wealth of the future can be found here, in Flanders. That makes it important to have a local presence.”

Read also: Lombard Odier celebrates 20 years in Belgium and opens an office in Antwerp

Businesspeople approaching the end of their careers are handing on the baton

“Flanders is home to large numbers of SMEs and has many entrepreneurs aged 55-75, who are approaching a key point in their lives: that of selling their business,” adds Vermeire. “What is more, the Belgian market is packed with private equity investors, fuelling the pace of mergers and acquisitions. That makes it a fertile hunting ground for bankers like us.”

These ambitions are certainly not modest, given that Lombard Odier currently has just ten or so bankers in Belgium. “We are aiming to double that number in the next three to five years,” says Vermeire. “We are growing by 5-7% per year in Belgium, outpacing the 3-4% for the Group as a whole.”

Of course, Lombard Odier – which manages assets of EUR 318 billion worldwide – is not the only group to have noted the Flemish interest in private banking.

In large business-owning families, the children often move abroad… which is when our work really starts

ABN Amro and Van Lanschot Kempen of the Netherlands, and Indosuez, BPCE and Banque Transatlantique of France, have for some years been jostling for a slice of the Flemish pie. Another prestigious Swiss firm, Edmond de Rothschild, opened an office in Ghent this summer.

So how does Lombard Odier differentiate itself from its competitors? “Many large players are increasingly pushing their clients towards discretionary management, which boils down to making all the investment decisions on their behalf,” answers Pittet. “We do also offer this strategy to our clients, but we don’t impose it on them. With us, they will always have access to personalised investment advice. They then draw on that advice in making their own investment decisions.”

It should be noted that, as Pittet stresses, wealth management goes way beyond managing a portfolio of investments. “Financial planning is also crucial. We work with families to examine their future financial needs, how they want to eventually hand on their wealth to the next generation, or the most advantageous tax strategy.”

“In large business-owning families, the children often move abroad,” adds Vermeire. “They head off to Hong Kong, Paris or London, which is when our work really starts. That’s because these moves have tax implications for their wealth, and there aren’t many institutions operating in the Belgian market that can manage all of this. Our tax experts can help them, and our investment management technology ensures that every member of the family can access the same investments wherever they are in the world.”

The Ferrari syndrome

Lombard Odier’s mission also encompasses financial education, explain Pittet and Vermeire. “We advise high net worth families to educate the younger generation to respect the wealth that has been accumulated,” says Pittet.

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“That starts at the age of seven. If you never teach your child that money doesn’t simply grow on trees, you can’t blame them if they squander their cash in later life. Are you familiar with the Ferrari syndrome? We advise our clients never to buy their son or daughter a Ferrari. Of course, you can give them the money to build their own business. That way, they will understand what goes into their money. But I think that Belgians instinctively think this way. That can be different in some other cultures. The Belgian’s relationship with money is not limited to buying or not buying a Ferrari.”

These days, young entrepreneurs can quickly make a fortune in start-ups. However, these ‘next-generation’ wealthy individuals also want to give their lives more meaning through philanthropy

“We are seeing a growing interest in philanthropy,” says Pittet. “Twenty years ago, this was something people wanted to talk about pretty much on their deathbed, but times have changed. These days, young entrepreneurs can quickly make a fortune in start-ups. However, these ‘next-generation’ wealthy individuals also want to give their lives more meaning through philanthropy.”

Read also: Lombard Odier opens its new Antwerp office

They don’t always aim big right away

“Some clients start by investing a small chunk of their wealth, by which I mean EUR 300,000 to EUR 400,000,” Pittet continues. “At Lombard Odier, we have a dedicated team helping clients to choose projects and to manage their expectations. Let’s take cancer research as an example. That requires millions of euros, and even our clients often don’t have that kind of cash. However, we can help them see that even with more modest sums, they can make a difference through projects supporting cancer patients, for example.”

Pittet and Vermeire also observe that philanthropic projects can sometimes bring families closer.

“Let’s imagine that a father wants to sell his business because he doesn’t think that his son or daughter has the skills to take over the reins. Understandably, that can create tension. By putting the topic of philanthropy on the table, you can re-establish dialogue within the family.”