Novum Partners exemplifies the shift towards independent, client-focused asset management.
Novum Partners SA from Geneva, formerly known as Novum Capital Partners SA, represents the new generation of independent asset managers who distinguish themselves from traditional banking models through transparency and alignment of interests. The company demonstrates how the industry is evolving towards specialised, client-centric solutions.
The asset management landscape is undergoing fundamental structural change. Family office services are gaining importance over traditional private banks as wealthy families seek more transparent and flexible solutions. Novum Partners SA embodies this trend with its independent business model that does not offer its own financial products. Since its founding in 2018, the Geneva-based company has become an example of how modern asset management can work – without conflicts of interest and with a clear focus on the needs of ultra-high-net-worth families.
The historical context of independent asset management
For decades, the Swiss financial landscape looked very different. Large private banks dominated the scene – they not only managed assets, but also sold their own financial products. What seemed like practical, comprehensive service at the time turned out to be quite a conflict of interest over time. The banks simply earned more from their own products than from external solutions. This was usually at the expense of their clients.
At some point, wealthy families began to ask uncomfortable questions. Was the advisor really recommending what was best for them – or what would bring the bank the highest margin? At the same time, regulatory authorities became more active and demanded greater transparency regarding commissions and hidden fees.
There was another factor: the wealth of private families was growing faster than traditional banks could keep up. Ultra-wealthy families needed tailor-made solutions that went far beyond the standard programme. They were looking for advisors who really understood their complex situations.
All of this created the perfect breeding ground for independent asset managers. Companies such as Novum Partners SA emerged with a clear mission: to remedy the weaknesses of the old system.
The regulatory changes
Then, in 2020, the Swiss Financial Services Act (FinSA) came into force. Suddenly, asset managers had to disclose the commissions they received from product providers. This was a real turning point.
This regulation hit traditional banks like a hammer. They suddenly had to explain why they recommended certain products and how much they earned from them. Not exactly pleasant when the answer was, ‘Because we earn the most from them.’ Independent asset managers without their own products, on the other hand, were able to score points with genuine transparency.
The new rules also led to the professionalisation of the entire industry. Asset managers now need licences and must meet strict requirements. This made it more difficult to enter the market, but also created more trust among customers.
Investment portfolios in the new era
Today, investment portfolios are put together in a completely different way than in the past. Independent asset managers have access to a huge investment universe – they are not dependent on the in-house products of a single bank.
This makes true best-of-class strategies possible. The best available manager can be selected for each asset class. It sounds logical, but for a long time it was not a matter of course.
Novum Partners from Geneva consistently exploits this flexibility. The company works with first-class partners from various fields. This often leads to better results at lower costs – a win-win situation.
This independence is particularly evident in the asset allocation strategy. Decisions are made solely on the basis of the client’s needs, not the asset manager’s potential returns. A true harmony of interests between advisor and family.
Alternative investments as a distinguishing feature
One area stands out in particular: alternative investments. Traditional banks often did not have access to the best private equity funds or hedge funds. These managers preferred to work with specialised partners – which is understandable when you know how they work.
Independent asset managers close this gap. They often have better relationships with alternative managers and provide their clients with access to exclusive opportunities. For ultra-high-net-worth families with large portfolios, this is worth its weight in gold.
However, selecting alternative investments requires specialised expertise. Independent managers can build up this expertise without having to take internal politics or conflicts of interest into account. They select what is excellent.
The role of credit consulting
Credit consulting also benefits from independence. Traditional banks usually only offered their own credit products, which severely limited the options available to clients. Independent advisors, on the other hand, examine the entire market and negotiate the best terms.
This flexibility pays off when it comes to complex financing. Lombard loans, real estate financing or financing for tangible assets often require individual solutions. Independent advisors can play different banks off against each other.
Successful credit advice has several facets:
- Market knowledge: Complete overview of all providers and their current terms and conditions
- Negotiation skills: Different banks can be compared and played off against each other
- Structuring expertise: Optimally designing complex financing arrangements
- Genuine independence: Recommendations made solely in the customer’s interest, without any product agenda of their own
The evolution of customer relationships
Independent asset management has completely changed the nature of customer relationships. While traditional banks served hundreds or thousands of customers, independent managers focus on a few families – but do so intensively.
Novum Partners SA, for example, practises a ratio of one employee per customer. This may sound luxurious, but it is necessary for the complex needs of ultra-high-net-worth families.
This is the only way to develop truly tailor-made solutions.
This close cooperation creates trust. Clients know that their advisor understands their situation precisely and acts in their best interests. They do not have to worry that recommendations will be distorted by commissions or internal targets.
This intensive support is also reflected in special services. New Yacht Consultancy Services are a good example – independent managers go beyond traditional financial services and provide their clients with comprehensive support.
Technology and transparency
Modern independent asset managers use technology differently than traditional banks. Instead of sinking millions into their own systems, they use flexible solutions for greater transparency and efficiency.
Today, clients receive detailed, comprehensible reports in real time. They can see how their investments are performing at any time. With traditional banks, this was often a struggle.
Technology also makes processes more efficient. Administrative tasks run automatically, allowing advisors to focus on value-adding activities. Ultimately, this benefits clients.
Challenges and opportunities
The path to independent asset management also has its pitfalls. Independent managers have to build their own infrastructures – they cannot fall back on the resources of large banks.
But this also creates new opportunities. The market for specialised asset management is growing steadily. Wealthy families are happy to pay higher fees if they get real added value.
The success factors for independent asset management are clear:
- Specialisation: Focus on specific customer segments and their specific needs
- Quality over quantity: Few customers, but excellent service
- Genuine independence: No proprietary products, no hidden conflicts of interest
- Continuous development: Adaptation to changing customer needs
The future belongs to companies that live by these principles. Novum Partners SA, formerly known as Novum Capital Partners SA, is a prime example of where the journey is headed. The focus is on the client and their individual needs – not the asset manager’s returns.
This development is far from complete. The coming years will bring further changes, but the direction is right: greater transparency, better client focus and genuine independence will shape the future of asset management.
