Banking and Finance News & Trends: Jan Week 2

Banking and Finance News & Trends: Jan Week 2

Banking and Finance News & Trends: Jan Week 2

1. Markets

i. Vietnam Seeks to Launch Two New Financial Centres

Vietnam is introducing unprecedented policies to establish two new financial centres—an international one in Ho Chi Minh City and a regional one in Da Nang. Key highlights include:

  • Simplified administrative procedures for organisations registered with the centres.
  • Tax exemptions, reductions, or holidays for qualified organisations.
  • Regulatory sandboxes for fintech businesses, including cryptocurrency exchanges.
  • Financial support allocated for training Vietnamese workers at investment projects in the area.
  • Financial incentives.

Takeaway: The move is aimed at attracting global capital flows shifting from traditional hubs like Hong Kong and Singapore. Vietnam’s strategic location, economic growth, and political stability make it an attractive contender in the regional financial sector. However, competition from other hubs and the need for solid regulatory frameworks remain challenges. The proposals will be reviewed and presented for approval by May 2025.

 

ii. Hong Kong Tweaks Investment Threshold to Attract Family Offices

Hong Kong is relaxing its Capital Investment Entrant Scheme to attract more family offices and bolster its position as a global wealth hub. Starting March 1, 2025, investments made through an eligible private company or family-owned vehicles will count towards the scheme, which requires a HK$30 million investment to secure residency. The programme, revived last year after a two-decade hiatus, aims to bring in over HK$24 billion in investments.

Takeaway: This comes as part of broader efforts to compete with cities like Singapore and recover from economic setbacks. This comes after Hong Kong introduced changes in October allowing residential properties worth HK$50 million and above to qualify as part of the investment. The initiatives align with tax concessions for family offices and the goal to increase the number of family offices in Hong Kong to 200 by the end of 2025.

 

2. Business Expansions

i. Hiring: Morgan Stanley and Apollo

Morgan Stanley: Morgan Stanley is prioritising expansion in Asia’s ultra-high-net-worth (UHNW) segment, planning to grow its regional wealth relationship managers from 140 to 200 over the coming years. The bank aims to leverage its scale to help clients diversify globally, particularly into growth areas like US healthcare and artificial intelligence.

Apollo: Apollo Global Management, a multi-asset manager with $733 billion in assets under management, announced its intention to expand in Japan and across Asia to capitalise on growth opportunities in the region. Key initiatives include:

  • Japan Focus: Apollo projects Japan to be its fastest-growing market in Asia over the next two years, and it plans to increase staff in its Tokyo office from 20–25 to 30 by 2026, with a focus on private equity, institutional sales, wealth, and credit.
  • Asia Wealth Business: Apollo plans to double its wealth staffing over the next two years and start hiring in South Korea and Australia.
  • Global Expansion: Apollo aims to double its global size within five years.

Takeaway: The firm’s growth in Japan and Asia mirrors similar moves by rivals Warburg Pincus and Carlyle. It also aligns with a surge in Japan’s dealmaking activity, driven by corporate governance reforms and a weakened yen, which made Japan the largest private equity market in Asia-Pacific in 2023 (30% of total deal value).

 

ii. Swiss Asset Manager Bellevue Launches Singapore Office

Swiss asset manager Bellevue Group is launching a Singapore subsidiary, Bellevue Asset Management (Singapore). The subsidiary will be led by Florin Boetschi, a seasoned expert in Asia-Pacific (APAC) markets, who has been pivotal in Bellevue’s regional expansion over the past two years. The firm, known for its specialisation in medical technology investments, plans to scale up its Singapore team to drive increased assets under management and strategic growth in the region.

Takeaway: The move seeks to help enhance its regional presence, grow its client base, and capitalise on the dynamic growth opportunities in Asian markets.

 

iii. Singapore Asset Manager Paragon Launches Hong Kong Office

Singapore-based asset manager Paragon Capital Management has expanded into Hong Kong, establishing its first overseas office to capitalise on the city’s position as a leading wealth management hub in Greater China. With a license from the Securities and Futures Commission, the firm will offer a full suite of services to wealthy clients in the region.

Takeaway: This move aligns with Hong Kong’s resurgence as Asia’s top financial centre, boasting HK$31.2 trillion (US$3.99 trillion) in asset and wealth management business as of 2023. Paragon’s expansion underscores the broader trend of international asset managers targeting Greater China’s affluent market through Hong Kong.

 

iv. Millennium Spin-Off Modular Expands into Hong Kong

Modular Asset Management, a $1.5 billion macro-focused hedge fund spun off from Millennium, is expanding to Hong Kong. Former Barclays trader Alex Hu Xiuyi has been hired as its first portfolio manager in the city. He is among four recent portfolio managers added as Modular expanded its investment team from 16 to 21 members over the past year, including traders and researchers. The other new hires are:

  • Dong Chan Lee, an Asia interest rates specialist who previously worked at BlackRock and managed funds for Prudential Asset Management’s South Korea division.
  • Shanci Zhang, whose career began at Lehman Brothers and includes trading roles at Pharo Management, Graticule Asset Management Asia and, most recently, Southern Ridges Capital.
  • Rajat Narang, relocating from India, where he specialised in trading rates at ICICI Securities Primary Dealership.

Takeaway: The move aligns with similar expansions by global hedge funds, such as Jain Global and Arrowpoint. This move highlights the ongoing recalibration of hedge fund strategies in response to geopolitical and market dynamics, with Hong Kong remaining a key battleground for financial services despite its challenges.

 

3. Business Moves

i. Private Lenders to Assume Control Over Alacrity in Debt Restructuring

Private lenders, including Antares Capital, Blue Owl Capital, and KKR, are set to assume control of Alacrity Solutions, an insurance claims manager, through a debt restructuring process. BlackRock, which acquired a 70% stake in Alacrity in 2023 for $560 million, will lose its entire equity investment. Key highlights include:

  • Debt Structure: Alacrity’s debt includes a $1 billion unitranche loan and $500+ million in junior capital from Goldman Sachs Asset Management (GSAM).
  • Ownership Changes: First-lien lenders will control 90% of the company, while GSAM will retain 10%. Lenders will convert half their debt to equity and inject $175 million in new credit facilities.

Takeaway: This follows broader trends in private credit markets grappling with higher interest rates and stress in portfolios, mirroring recent restructurings like Pluralsight. Operations are expected to remain unaffected during the transition, with the deal closing in Q1 2025.

 

ii. Clifford Capital Expands into Asset Management

Clifford Capital, a Singapore-based infrastructure credit platform, launched a new asset management arm, Clifford Capital Asset Management (CCAM), as its third business line. Vidyasagar Pulavarti was appointed Chief Investment Officer of CCAM.

  • Experience: Pulavarti has over 20 years of global credit and investment management experience. His background includes senior roles at Apollo Global Management, Commonwealth Bank of Australia, Citibank, and J.P. Morgan.

 

4. People Moves

i. Banks: HSBC, BOS, J.P. Morgan and UBS

HSBC:  Jil Chin, a 22-year veteran, joins as the new head of its international wealth hub for Singapore.

  • Responsibilities: Chin will focus on growing the offshore business by expanding client bases, strengthening cross-border collaborations, and enhancing client relationships.
  • Experience: Chin joins from Citibank Singapore, where she held senior roles in wealth management.
  • Takeaway: This appointment aligns with HSBC’s strategy to capitalise on the rapid growth of offshore assets in Singapore’s wealth and asset management sector.

HSBC Life Singapore: Ronald Tan was named chief agency development officer to lead its tied agency channel and distribution partnerships.

HSBC Global Private Banking: Two strategic appointments were made.

  • Urban Binggeli as Desk Head for Indonesia
    • Experience: Binggeli has over 15 years of experience in wealth management and previously served at UBS and Credit Suisse.
    • Responsibilities: He will focus on expanding relationships with ultra-high-net-worth (UHNW) clients and family offices.
  • Benjamin Wang as Desk Head for Thailand
    • Experience: Wang has over 20 years in private banking and was recently interim desk head for Thailand.
    • Responsibilities: He will lead offshore and onshore teams in Singapore and Bangkok, enhancing client strategies.

J.P. Morgan: J.P. Morgan Private Bank in Singapore appointed Faye Ong as head of its philanthropy centre for Singapore and Southeast Asia.

  • Experience: Ong joins from Citi Private Bank, where she served as the Asia head of family office advisory for four years. Before that, she was the South Asia head of wealth planning at Union Bancaire Privée.

BOS: The Bank of Singapore, the private banking arm of OCBC, has strengthened its discretionary portfolio management (DPM) capabilities with three key hires:

  • Ivan Goh (Senior Portfolio Manager): Goh has 25 years of experience spanning investment banking, institutional fund management, and private banking. He previously served as a senior investment strategist at LGT in Hong Kong.
  • Donavan Goh (Portfolio Manager): Goh is a fixed income specialist with over a decade of expertise in risk management and structuring. He previously served at UBS, where he managed fixed income strategies.
  • Shayna Mok (Client Portfolio Manager): Mok has 13 years of experience in financial services. He previously served at UBS, Credit Suisse, and HSBC Asset Management.

UBS: UBS is ramping up its focus on Japan’s regional banking market by hiring senior sales professionals to expand its offerings of high-yield structured investments and derivative products.

  • Recent Hires: These include Shuhei Sanada from HSBC, Eiichiro Yoshida from Nissay Asset Management, and Hiroaki Sato from Barclays.
  • Responsibilities: The new hires will help strengthen UBS’s relationships with local financial institutions and deliver tailored solutions, including risk-hedging and portfolio restructuring products.

Takeaway: UBS’s move mirrors that of international banks like Morgan Stanley and Societe Generale, which are competing to hire bankers with strong connections to Japan’s local financial sector. The trend comes as financial institutions seek to capture the growing demand for derivative-based securities that provide higher returns to offset narrow lending margins.

 

ii. Wealth: Eastspring, Goldman, Blue Owl, Hunter Point, Amundi

Eastspring: Prudential appointed Ray Farris as the first chief economist for its asset management arm, Eastspring Investments.

  • Responsibilities: Based in Singapore, Farris will deliver macroeconomic insights to guide investment strategies across Prudential and Eastspring.
  • Experience: Farris has over 30 years of experience and has spearheaded research in economics, markets, and policy across three continents over the course of his career. He most recently served as Credit Suisse’s global chief economist and CIO for the Americas. During his 22-year tenure at Credit Suisse, he also held leadership roles such as chief investment officer for South Asia and head of Asia economics and fixed-income strategy. Beyond his time at Credit Suisse, he also served as Crosby Securities’ head of economics and equity strategy in Hong Kong.

Goldman Sachs: Goldman Sachs hired Sabrina Gan as a managing director of its client solutions group and head of third-party wealth (TPW) in Asia Pacific (APAC) Ex-Japan.

  • Responsibilities: Gan will operate in Singapore and work with TPW leadership to develop and execute the firm’s sales strategies.
  • Experience: Gan has over 20 years of experience in the asset management industry. Before joining Goldman Sachs, she served as head of the Southeast Asia region and country head of Singapore at Fidelity International. She also held senior distribution roles at BlackRock and Schroders.

Blue Owl: Alternative asset manager Blue Owl appointed Yoichi Nakamura as managing director and head of Japan private wealth, based in Tokyo.

  • Experience: Nakamura has over 20 years of experience. He previously served as CEO of Algebris Investments Japan, and worked at Fidelity International and Legg Mason.

Hunter Point: Hunter Point Capital appointed Peter Rosenbloom as the managing director and head of APAC on its capital formation team.

  • Responsibilities: In this newly created role, Rosenbloom will focus on strengthening HPC’s relationships with institutional investors and alternative investment firms in the region.
  • Experience: He has over a decade of experience, primarily in Hong Kong. He previously held roles at Investcorp and KKR.

Amundi: Amundi appointed Frank Tsui as its new head of responsible investment development for Asia ex-Japan.

  • Responsibilities: Based in Hong Kong, Tsui will lead the development of responsible investment strategies across all business segments in the region.
  • Experience: Tsui has 20 years of experience in asset and wealth management, including a decade at Value Partners as head of ESG investment. He previously held roles at UBS, Merrill Lynch, and J.P. Morgan Asset Management.

 

iii. Investment: Muzinich and Fidelity

Muzinich: Muzinich & Co. hired Pam Hsieh, a former BlackRock executive, as Director of Marketing & Client Relations in Singapore.

  • Responsibilities: Hsieh will focus on strengthening Muzinich’s relationships with financial intermediaries and wealth managers across Taiwan, Hong Kong, and Singapore.
  • Experience: Hsieh has over 10 years of experience in asset and wealth management and has held senior roles at Fidelity and BlackRock.
  • Takeaway: This move is part of Muzinich’s broader efforts to expand its presence in the APAC market, following recent partnerships in Taiwan and Hong Kong aimed at launching new credit solutions for investors.

Fidelity: Fidelity International appointed Wildon Goh as the new head of Southeast Asia and country head of Singapore, a position subject to regulatory approval.

  • Responsibilities: Goh will lead the firm’s strategy in the region, focusing on growth opportunities.
  • Experience: Goh, who joined Fidelity in 2015, has extensive experience in distribution and relationship management. He previously held roles at BlackRock, Citi, and HSBC. He replaces Sabrina Gan, who left the firm in December 2024.

Concurrently, Jonathan Leong was appointed head of wholesale, Southeast Asia, and Adin Tan as head of private banking for Hong Kong and Singapore. Both will report to Goh.

 

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Image Credits:

  • Bloomberg