Wealth Management: What Switzerland Can Learn from the US
A generational shift is approaching for Swiss wealth managers. A look at the US reveals how scale, succession planning, and private equity investors can accelerate growth.
The independent wealth management industry in the US has undergone remarkable development over the past decades. Particularly the so-called RIA industry (Registered Investment Advisors) has evolved from small boutique firms into highly scalable platforms. There are both structural differences from Switzerland and numerous similarities — offering valuable insights for the Swiss market.
Two Systems with a Shared Mission
While independent wealth managers (IWM) in Switzerland often originated from private banking, RIAs in the US developed out of traditional brokerage firms — the so-called wirehouses. Nonetheless, both models share a common goal: to offer clients an independent, long-term investment approach, free from corporate interests.
In both the US and Switzerland, the industry is relatively young: professionalization began around three decades ago in each country. Today, IWMs and RIAs are dealing with the same core issues — sustainable growth, regulatory pressure, intergenerational client retention, and structured succession planning.
The US as a Role Model for Entrepreneurial Spirit
One key difference lies in client acquisition. «American advisors had to build their client relationships from scratch, whereas Swiss advisors often started as assistants and took over clients from existing structures over time,» said Fernand Schoppig, CEO of FS Associates, an international consulting firm for investment management.
This entrepreneurial foundation has shaped the entire industry. In contrast, many Swiss advisors transitioned from major banks to independence, bringing clients with them — leading to a stronger reliance on existing networks.
As a result, American RIAs tend to be more marketing-oriented, tech-savvy, and open to experimentation — traits that also support scalability. At the same time, they focus more on specialization, targeting specific groups such as entrepreneurial families, doctors, athletes, or tech entrepreneurs.
Rapid Growth
Both the US and Switzerland have experienced rapid growth in the sector. Particularly noteworthy in the US is the increase in the number of RIAs managing over $1 billion in assets: that number has more than doubled over the past seven years.
«The rapid growth of most top RIAs is primarily driven by inorganic expansion through acquisitions following private equity investments. While this form of growth is still rare in Switzerland, the increasing consolidation in the IWM sector suggests that private equity may soon enter the scene here as well — potentially triggering a similar development as in the US,» observes Brad Bueermann, CEO of FP Transitions, a US firm that supports wealth managers in business valuation, development, and succession.
Fernand Schoppig (left) and Brad Bueermann. (Images: zVg)
Spotlight on Succession Planning
Besides client acquisition, succession planning remains the key challenge in both countries. In the US, various models have emerged — from management buyouts and earn-out structures to sales to strategic platforms or private equity investors. Switzerland is still at the beginning of this journey, although the number of transactions is rising.
«The central challenge in both countries remains the same: striking a balance between continuity of client mandates and value creation for the owners. In practice, this raises questions around capital sourcing for internal solutions or finding buyers who maintain the company’s philosophy and client relationships,» said Schoppig.
A Culture of Acquisitions Still Lacking
«The Swiss market is smaller and more mature but shows similar demographic patterns to the US about ten years ago — such as a high proportion of IWM owners over 60 years old. While there is still no pronounced acquisition culture in Switzerland, the wave of retirements is likely to change that,» Bueermann added.
Another contributing factor is the emergence of platform providers that consolidate multiple wealth managers. If the market continues to move toward the US model, these platforms could themselves become active buyers in the future.
