Banque Havilland is the newest entrant in the Swiss private-banking industry. The Luxembourg-based banking group built its global presence in quick succession, financed by a publicity-shy billionaire.
«How did a family-owned bank get so big, so fast?», U.K. magazine «Cafe Babel» asked in story about Banque Havilland recently. A good question, which needs some explaining.
David Rowland, a U.K. real-estate tycoon and billionaire, is the man behind the meteoric rise of Banque Havilland. He founded the bank in 2009 with the remainder of Kaupthing, the Icelandic bank that went bust. His requirement: a bank to manage his dosh.
Rapid Expansion
Little surprise then that Havilland has since its foundation acted primarily as manager and partner of the global business activities of the Rowland family. The banking group has a low single-digit amount in assets under management – Havilland had 1.3 billion euros in managed assets in 2014, and posted a profit of 2.7 million euros.
Havilland's expansionary drive continued despite the wafer-thin profitability – with Banque Pasche acting as stepping stone for its further growth. Havilland in quick succession added the Pasche units in Monaco, the Bemudas and in Liechtenstein to its portfolio.
Swiss Deal
This year, the bank took Banco Popolare Luxembourg under its wings. As its stands today, Havilland has a presence in Luxembourg, London, Monaco, Liechtenstein, Bahamas, Moscow and Dubai – and now in Geneva and Zurich, after swallowing the rest of Pasche.
The transaction took time to conclude. Finma, the Swiss regulator, took more time to wave the deal through than anticipated as it had to evaluate the new owners of Pasche thoroughly. Havilland and Groupe Mutuel-CIC, the owners of Pasche, had expected the approval at the end of November when they announced the sale in July of 2015.
Why it took six months longer than forecast remains the secret of Finma and Banque Havilland. But it can't only be the difficulties of Banque Pasche, involved as it is in a tax fraud and money-laundering scandal in France, that prevented an earlier decision.
CEO With Kaupthing Track Record
Havilland is not exactly an open book with a track record of spotless and sustainable bookkeeping: to this day, it remains unclear how the bank wants to achieve its aim to be a leading wealth manager for the super rich and family offices.
The bank clearly hasn't succeeded in attracting new money and customers. Jean-François Willems is the Belgian CEO of the group, having previously, as a 30-year-old, managed the investment banking and corporate finance of Kaupthing.
In the Interest of the Family
The impression remains that the global expansion and also the access to Swiss banking happened mainly to further the interests of the family. Seven out of eight children of the father, David Rowland, work for the bank, according to an interview by Venetia Lean, a daughter of David, who had acted as COO until 2013.
David himself initially planned to base his bank in Switzerland. He baulked at the prospect of having to undergo the arduous procedure designed to vet prospective owners of a banking license in Switzerland. After the approval of Finma, he's reached his goal through the backdoor.
Nice Friends
Rowland can be proud of a top-notch network back home, with the royal family and Prime Minister David Cameron among the best-known of his contacts. But the 71-year-old businessman isn't well liked. He was prevented from become the treasurer of the Tories in 2010 after complaints that he would tarnish the reputation of the party.
The tycoon had become the target of a media campaign after donating several million pounds to the party. The investigators paid by the newspapers unearthed several anecdotes which further damaged the reputation of Rowland as a dubious and aggressive businessman.
Prince Andrew as Special Guest
Rowland was also shamed for leaving the U.K. because of tax purposes. He only returned to Britain in 2009 in a bid to fulfill his political ambitions, having spent decades living in Guernsey, France and the U.S.
Rowland is the honorary chairman of Havilland. For the opening of the Monaco branch, he invited Prince Andrew as a special guest. The branch previously was the home of Banque Pasche, which is known to have done business with money from uncertain backgrounds.
The Swiss banking industry sure is eager to see how Banque Havilland will fare in a country that has been castigated for its banking habits developed over the past decades.
