Crossinvest (Asia), a privately owned wealth manager, had a change in ownership last year and incoming CEO and chairman, Cem Azak, has already had an impact making him one of the Rising Stars for Asia- Pacific recognized at the PBI Global Wealth Awards 2021, held virtually on 8 October.
Crossinvest (Asia) believes that the change in ownership enacted last year will offer it more resources to improve its private equity (PE) and venture capital (VC) units and will support the development of its family office services.
New CEO, Cem Azak, has a network of ultra high-net worth (UHNW) individuals and families in London, Frankfurt, New York, Zurich, Dubai, Hong Kong and Singapore, that will help it overhaul its family office. Azak believes he can offer the firm better access to investment products via his network built up over many years in the industry.
Azak was formerly EFG Bank’s managing director & head of international markets, and part of their private banking (PB) council as well during his five years at EFG in senior management, before taking the reins at Crossinvest Asia in 2020. He had previously worked at DBS in Singapore as Europe, Middle East & Africa (EMEA) head, and spent a decade at Barclays before that.
Set up in Switzerland in 1985, Crossinvest secured a fund management license from the Monetary Authority of Singapore (MAS) in 2005 entering the region as a founding member of the Association of Independent Asset Managers Singapore.
Speaking to Private Banker International (PBI) at the start of his tenure, Azak said: “While we will continue to focus on investing across the global financial markets providing access to multi-asset class solutions, Crossinvest (Asia) will also be offering more PE and VC opportunities for our clients in future.”
“This could include financing solutions and investment opportunities for clients’ companies as well,” continued Azak. “I like to call it ‘private investment banking’. We aim to be a ‘one-stop-shop’ for our clients where they can receive comprehensive advice and integrated solutions to meet all their needs – from investment to business financing needs, from wealth to legacy planning.”
Additionally, Azak said to PBI that Crossinvest will also commit to digitized wealth management services and sustainable investing, reflecting the trends evident in the industry.
Another key industry trend is the rise of family offices in Asia-Pacific, hence the acquisition of a majority shareholding in Crossinvest Asia as an existing multi-family office player, with a strong investment management team and track record. The rise of family offices in A-P apes what happened earlier in Europe and the US when wealth flows from first generation creators to builders and inheritors in the second and third generation, necessitated a plethora of new services. Family assets increasingly need to be structured and allocated via trusts or put in alternative investments that can bring higher returns, and so on. A fiduciary advisor must act with a higher standard of care to his clients than a mere financial advisor and this is increasingly what family office clients demand in A-P – and have a right to expect.
Professionalization of the sector has advanced rapidly as wealth in the region has advanced.
Another driver for the acquisition was that at a multi-family office the incentive structure is built to align with the clients’, removing any possible conflict of interest between the advisor and clients. This is attractive to Azak as he believes merging asset management and private wealth services for clients is a better way to navigate financial markets and removes the conflicting interests and barriers that can sometimes impede banker / client relationships. The longer timeframe prioritized in wealth transfer and legacy planning can be particularly helpful in this regard.
The new CEO has already helped the company close its largest PE funding deal with one of Singapore’s most innovative artificial intelligence (AI) firms to finance its ambitions. The extra investment will help it enhance the asset management service and increase Crossinvest Asia’s capabilities.