Enrico Guagni, chief executive, Zest

Swiss independent asset managers Zest and LFG Holding have announced a tie-up, with the consolidated group having CHF 2.5 billion in assets under management (AUM).

Funds offered by the new group will retain the Zest brand, and will be marketed to clients of both firms, including family offices, a LFG specialization.

In a statement the firms highlighted the need for consolidation within the sector, both for operational reasons and to ease the regulatory burden.

Enrico Guagni, chief executive of Zest, commented: “To date, the consolidation of the independent asset managers sector has been limited. LFG and Zest wanted to be among the first in this direction, combining their activities under the same hat.”

Massimo Borghesi, director of LFG Holding, added: “We believe that the sector needs a significant consolidation process, to meet the increasingly stringent regulatory requests and to be able to offer a customer service in line with the highest international standards.”

Zest is an independent asset manager based in Lugano, established in 2012, and offers UCITS and alternative funds covering equities, bonds and alternative investments.

LFG Holding, also based in Lugano, was established in 2010 and covers family office and wealth management.