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Tuesday, January 10, 2023

Ex-Banker Eyes M&A After SPAC Deal Forges $60 Billion Wealth Agency

(Bloomberg) — Michael Tiedemann turned his again on a Wall Avenue banking profession 20 years in the past to construct a wealth-management agency concentrating on the world’s super-rich.

The previous Credit score Suisse First Boston government grew his enterprise in recent times by partnering with or backing buyouts of abroad rivals. Now, after finishing a merger final week with Alvarium Investments by way of a blank-check firm, he’s eyeing additional offers.

Like many traders on Wall Avenue, although, he is ready to see how the economic system and the markets shake out over the approaching months with the outlook as unsure as ever.

“There might be inorganic strategic alternatives for us,” Tiedemann, 51, chief government officer of New York-based Alvarium Tiedemann Holdings Inc., mentioned in an interview. “The timeframe round one quarter versus the subsequent versus subsequent 12 months is clearly very a lot to be decided.”

Tiedemann and London-based Alvarium accomplished their merger by way of Cartesian Progress Corp. That got here after navigating the precarious marketplace for particular goal acquisition corporations, which has undergone a painful reversal following a pandemic-era growth.

Every of the 2 corporations caused $30 billion in belongings, making Alvarium Tiedemann one of many world’s largest publicly traded cash managers that focuses on the ultra-wealthy.

The mixed firm’s shares have sunk as a lot as 46% since they started buying and selling in New York on Jan. 4, highlighting the volatility of SPAC offers, and have been down 8% to $8.74 at 12:09 p.m. Nonetheless, Tiedemann mentioned he and his companions, together with their traders, favored the construction as a result of they weren’t trying to offload inventory. Members of Qatar’s ruling dynasty, the Al-Thani household, are amongst Alvarium’s traders, UK filings present.

“We’re dedicated to constructing this long run,” mentioned Tiedemann, who beforehand led Credit score Suisse First Boston’s gross sales buying and selling for Latin America. “We felt strongly that the setting for SPACs was going to get tougher.”

Learn extra: SPAC Euphoria Turns Into Painful Reckoning as Liquidity Runs Dry

The competitors to handle super-rich buyer’s wealth has ramped up in recent times, with Wall Avenue giants together with Goldman Sachs Group Inc. and Citigroup Inc. increasing their non-public banking operations outdoors the US. Tiedemann mentioned he sees being a listed enterprise as a technique to enhance hiring.

“It’s simpler to equitize workers — it’s one other device for us to make use of,” he mentioned. “We compete immediately with the worldwide banks, and we really feel we’ve got a superior shopper providing.”

Tiedemann is concentrating on investments in actual property corporations and alternative-asset managers for the agency, which partly grew out of a multimanager hedge fund enterprise arrange by his father Carl, a former president of Donaldson, Lufkin & Jenrette.

Tiedemann teamed up along with his father in 2000 to construct a wealth adviser, which ultimately expanded to about a dozen places of work throughout the US. He branched out internationally by way of a three way partnership with one other former Credit score Suisse banker’s Swiss wealth agency in 2019 to type Tiedemann Constantia, which purchased London multifamily workplace Holbein Companions two years later.

Alavarium, meantime, was additionally established as a multifamily workplace providing wealth and asset-management providers. Arrange in 2009, the agency has equally expanded by way of investing in different companies, shopping for French asset supervisor Iskander and New Zealand moral funding agency Pathfinder previously 5 years.

“It’s uncommon that you just meet a gaggle that has items that match as effectively,” Tiedemann mentioned.

Learn extra: Ex-Credit score Suisse Banker Bets on UK for $30 Billion Agency

Tiedemann, who mentioned he by no means thought he’d be working a publicly traded enterprise when he give up banking, is scheduled to ring Nasdaq’s opening bell on Thursday. It comes greater than two years after the opportunity of combining his enterprise with Alvarium — the Latin phrase for hive — was first broached.

“It is a 12 months the place we’ve got to show ourselves,” he mentioned. “We’ve accomplished that as a non-public firm and now it’s our alternative and obligation to show we’re going to be an thrilling public firm.”


–With help from Bailey Lipschultz.

To contact the authors of this story:

Benjamin Stupples in London at [email protected]

Amanda Albright in New York at [email protected]

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