The Architecture of Private Wealth
Private banking at the upper tier: families with investable assets above USD 50 million, bears little resemblance to the retail private banking offered to mass-affluent clients. It is not about selecting a managed portfolio of ETFs or accessing preferential mortgage rates. It is about constructing the institutional framework that holds, grows, and transfers wealth across generations and jurisdictions.
The core functions are distinct, though they often overlap within a single institution or family office:
Wealth structuring addresses the legal and tax architecture: which assets sit in which jurisdiction, held through which entities (trusts, foundations, holding companies, life-insurance wrappers), and with which reporting obligations under CRS, FATCA, and beneficial-ownership registries.
Investment management at this level is typically a consolidated view across asset classes, liquid portfolios, private equity and venture capital commitments, direct real estate, and operating businesses, with a family office acting as the general contractor who allocates capital to specialist managers rather than a single bank managing everything in-house.
Lombard lending and credit is the engine of much of this activity. A family with USD 100 million in diversified assets can borrow against that portfolio at 50-70 basis points over LIBOR to fund a new acquisition, bridge a tax event, or provide working capital to an operating subsidiary, without triggering the capital gains that selling assets would produce.
Concierge and lifestyle management at the institutional level goes far beyond booking restaurant reservations. It encompasses aircraft acquisition and management, yacht crew payroll, art collection insurance, visa and residency coordination, and the quiet handling of the practical logistics that enable a multi-jurisdictional lifestyle.
The Family Office Model
A single-family office (SFO) typically becomes economically rational above USD 100-200 million in investable assets, at which point its annual cost (typically 50-100 basis points of AUM, covering a CIO, legal counsel, accountants, and administrative staff) is competitive with the all-in fees of outsourcing to private banks. A multi-family office (MFO) extends this model to several families who share infrastructure costs while maintaining separate investment strategies and reporting.
Publicly Traded Institutions Versus Private Banks
The Swiss private banks: Pictet, Lombard Odier, Julius Baer, EFG International, operate partnership or listed structures that, in theory, align their interests with clients’ long-term capital preservation. The major universal banks: UBS, Credit Suisse (now integrated into UBS), HSBC Private Bank, BNP Paribas Wealth Management, Citi Private Bank, offer broader balance-sheet capabilities but come with the institutional complexity of large publicly traded parents. The right choice depends on whether the family values independence and discretion (the Swiss tradition) or access to the broadest possible product shelf and credit capacity (the universal banks).