Investor types

Private banks

A private bank is a licensed bank that provides investment management, advice, custody and lending to wealthy private clients. In private markets it acts mainly as a distributor, approving funds for its platform and placing them with clients.

What a private bank is

A private bank is a licensed bank that provides investment management, advice, custody and lending to wealthy private clients. It differs from a wealth manager because it holds a banking licence, takes deposits and lends against client portfolios. It differs from a multi-family office by serving a far larger client base. And it differs from the corporate and investment banking activity described on the banks page because its clients are individuals and families rather than companies.

For a company or fund manager raising capital, the distinction matters. A private bank rarely invests its own balance sheet in a fund or a company. It acts as a gateway to client money: the bank approves a product and its advisers then place it with clients.

Scale of private banking by booking centre

Private banking is measured most consistently through cross-border wealth, meaning assets booked in a country other than the client's country of residence. The Boston Consulting Group (BCG) reported that cross-border wealth rose 8.4% to US$15.7tn in 2025; the key takeaways of the same report give US$15.6tn.¹

The Swiss Bankers Association reported that assets managed by banks in Switzerland reached a new all-time high in 2025.² For the Gulf the comparable published measure is the United Arab Emirates' cross-border wealth; for Asia it is Hong Kong.

Structures and sub-types

Four models are common. Universal banks run wealth divisions within a larger group, as UBS does through Global Wealth Management. Partnership-owned private banks, such as Pictet and Lombard Odier, are controlled by their partners. Cantonal and regional banks form a third group. Offshore booking-centre branches book the assets of clients resident elsewhere.

The model affects how a bank approaches private markets because private banks distribute both third-party and in-house funds. The balance between the two depends on what the group itself manages.

Source of capital and investment horizon

A private bank works with two pools of money. Client deposits and assets in custody belong to clients; their investment horizon follows each client. The bank's own balance sheet funds Lombard lending, meaning loans secured on a client's portfolio. Neither pool is a fund with a fixed life, so a private bank does not commit capital to a fund in the way that a pension fund does.

How private banks invest in private markets

Private banks distribute third-party and in-house private market funds to clients through feeder funds and evergreen vehicles. A feeder fund aggregates many client subscriptions into a single commitment to an underlying fund, handling capital calls and reporting on the clients' behalf. An evergreen vehicle has no fixed end date and admits new money periodically. Larger clients may also be offered co-investments or club deals alongside a fund.

Typical ticket sizes

The commitment a bank makes through a feeder fund depends on the aggregate demand of its clients for that product, not on the bank's total client assets. The same fund can therefore raise very different amounts at banks of similar size, and the figure has to be established with each bank.

How decisions are made and how long they take

The process has four steps.

1. The fund manager or its placement agent presents the fund to the bank's product team.
2. The bank reviews the fund's strategy, record and team; a separate review covers its legal terms, valuation policy and operations.
3. A product selection committee decides whether to approve the fund for the bank's platform.
4. Once the fund is approved, client advisers place it with clients, usually through a feeder fund or an evergreen vehicle.

A fund manager therefore needs both platform approval and adviser support for a placement to succeed. Approval at platform level does not by itself raise any money; the amount committed depends on how many clients subscribe.

What private banks look for

Because the product is placed with clients rather than held by the bank, a fund must be suitable for distribution through the bank's channels as well as attractive as an investment. In practice that means a structure that a feeder vehicle can access, reporting that suits clients in several tax jurisdictions and operations that pass the bank's separate operational review.

Regulation and governance

Banks in Switzerland are supervised by the Swiss Financial Market Supervisory Authority (FINMA). The final Basel III capital standards entered into force in Switzerland on 1 January 2025, as the Federal Council confirmed on 26 June 2024.⁵ Anti-money laundering obligations are enforced through reporting: the Money Laundering Reporting Office Switzerland (MROS) received 15,141 suspicious activity reports in 2024, an increase of 27.5% on the previous year.⁶

Banks in the UK are authorised by the Prudential Regulation Authority and the Financial Conduct Authority. EU banks fall under the Capital Requirements Regulation and Directive; US banks fall under federal and state regulators. Capital rules on holding private market assets and suitability rules on distribution vary by jurisdiction and turn on local law.

Trends in 2025 and 2026

Four trends stand out.

1. Hong Kong overtook Switzerland. For the first time, Hong Kong narrowly overtook Switzerland as the world's largest cross-border booking centre in 2025, with both at US$2.9tn.¹
2. Asia is expected to keep growing faster. BCG projects growth of around 9% a year to 2030 for Hong Kong and Singapore, against around 6% a year for Switzerland.¹
3. Swiss assets reached a record. Assets managed by banks in Switzerland rose 4.8% to CHF 9,729.1bn in 2025, a new all-time high.²
4. Lower Swiss interest rates. The Swiss National Bank lowered its policy rate by 0.25 percentage points to 0% on 19 June 2025, with effect from 20 June 2025.⁷ Lower rates reduce what banks earn on client deposits and increase the weight of fee income from investment products.

The fastest-growing centres in 2025 were the United Arab Emirates (up 11.1%) and Hong Kong (up 10.7%).¹

Notable examples

The measures differ: UBS reports invested assets, Pictet assets under management or custody and Julius Baer assets under management; Lombard Odier reports both total client assets and assets under management. UBS has set a target of more than US$5.5tn of Global Wealth Management invested assets by 2028.¹²

How advisers and placement agents work with private banks

In market practice, placement agents and fund managers seek platform approval from the bank's product and fund selection teams, then support the bank's client advisers once the fund is on the platform, including through briefings on the strategy. Private banks also introduce opportunities to single family offices, which frequently receive deals through their banks. Anglo-Suisse Capital advises on capital raising, M&A and secondary transactions with professional investors.

Frequently asked questions

Is Switzerland still the largest cross-border wealth centre?

No. Hong Kong narrowly overtook Switzerland in 2025, with both at US$2.9tn of cross-border wealth.¹

How much do banks in Switzerland manage?

Assets managed by banks in Switzerland rose 4.8% to CHF 9,729.1bn in 2025.²

How big is UK private banking?

UK private banking manages over £400bn of assets for more than half a million clients and employs approximately 20,000 people.⁴

Which centres grew fastest in 2025?

The United Arab Emirates grew 11.1% and Hong Kong 10.7%.¹

Do private banks invest their own money in private market funds?

Mainly no. They distribute third-party and in-house funds to clients through feeder funds and evergreen vehicles.

How does a fund get onto a private bank's platform?

The bank reviews the fund, a product selection committee approves it and client advisers then place it with clients.

When did the final Basel III rules apply to Swiss banks?

From 1 January 2025.⁵

What is UBS's wealth target?

More than US$5.5tn of Global Wealth Management invested assets by 2028.¹²

Working with Anglo-Suisse Capital

Anglo-Suisse Capital advises companies, fund managers and shareholders on capital raising, M&A and secondary transactions with professional investors in the UK, Switzerland and internationally.

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Sources

1. Boston Consulting Group: Global Wealth Report 2026, Global wealth growth in an era of reordering (27 May 2026)
2. Swiss Bankers Association: Banking Barometer 2026, Wealth management (2026)
3. Swiss Bankers Association: The Swiss Financial Centre, open markets (January 2026)
4. PIMFA, UK Finance and KPMG: UK private banking and wealth management (May 2025)
5. Swiss Federal Council: Implementation of final Basel III standard with effect from 1 January 2025 (26 June 2024)
6. BDO Switzerland: MROS annual report 2024, money laundering reports rise (29 July 2025)
7. Swiss National Bank: Monetary policy assessment of 19 June 2025 (19 June 2025)
8. Family Wealth Report: Full-year 2025, Q4 wealth revenues rise at UBS (4 February 2026)
9. Pictet: Full-year 2025 figures (10 February 2026)
10. finews.asia: Julius Baer, profit drops while AuM hits record in 2025 (2 February 2026)
11. Lombard Odier: Lombard Odier reports full-year 2025 results (19 February 2026)
12. UBS: Annual Report 2025 (2026)

This page is general information for professional investors and is not investment advice. Figures are taken from the sources listed, as at the dates stated.