The independent wealth management industry in Germany and Switzerland is undergoing a profound structural transformation. A sector long defined by individuality and entrepreneurial freedom is increasingly facing consolidation pressure. This is evident not only in high-profile mergers such as HRK Lunis with Grossbötzl, Schmitz & Partner or the expansion of Cinerius Financial Partners, but also in a shifting attitude toward private equity investors.

Quirin Privatbank also plans to drive its growth through acquisitions of independent asset managers, CEO Karl Matthäus Schmidt told Bloomberg. Initial talks are already underway, and the first deals are expected by next year at the latest. Schmidt sees strong opportunities, as many wealth managers in Germany are approaching retirement and seeking succession solutions. Berenberg Bank has also expressed interest.

„We’ve been observing a consolidation among independent asset managers in Germany for several years now“, says Florian Grenzebach, Head of Sales at V-Bank. The driving forces are a mix of regulatory requirements, demographic change, and increasing professionalization. Pressure to digitize and growing competition from banks and fintechs further intensify the situation.

One of the most common triggers for mergers is the lack of a succession plan. According to a study, 60% of independent asset managers in Switzerland will need to find successors within the next three to five years. Similar dynamics can be seen in Germany. „The main driver will be that many partners will seek succession solutions due to their age“, emphasizes Joël Schüepp, CEO of Cinerius.

Platforms like Cinerius or HRK Lunis have entered the market to acquire and further develop independent asset managers. In 2023, Lunis Vermögensmanagement merged with Munich-based Huber, Reuss & Kollegen to form HRK Lunis. A year later, they acquired Hamburg-based asset manager Providens.

In spring 2023, private equity investor Seven2 joined HRK Lunis. The investor, formerly known as Apax Partners, sees strong growth potential in the fragmented German market. The goal was to support HRK Lunis in building a platform for independent asset managers.

Amauris Invest is another active investment firm: it acquired well-known asset manager Lingohr & Partner in 2022, followed by Ficon Vermögensmanagement in 2023. Cinerius, in turn, integrated firms including BV & P, KSW Vermögensverwaltung, Habbel, Pohlig & Partner, and Ringelstein & Partner. The aim isn’t only growth, but also the continuity of successful businesses: „The succession plan through Cinerius helped me to let go“, says Anton Vetter, board member of BV & P Vermögen.

But integration comes with risk. Andreas Kitta, board member at the Association of Independent Asset Managers Germany (VuV), warns: „Diversity makes mergers difficult – many entrepreneurs have consciously chosen self-employment and want to stick to their own vision. When you merge two companies, one has to give up its identity.“ That’s a huge challenge and often an obstacle to consolidation.

Still, there are nuanced approaches to consolidation. Cinerius offers two models: full integration or retention of the firm’s own brand as part of a decentralised hub. What matters, as per the company, is „that the partners are a cultural fit.“ HRK Lunis also walks a fine line between integration and independence. „We want to grow, but without losing the individuality of our advisors. Everyone remains an entrepreneur, everyone retains their freedom in client service“, notes board member Artur Montanhas.

The role of private equity is a controversial topic in the industry. While some platforms like Cinerius or HRK Lunis embrace backing from investors such as Seven2, others remain sceptical. „Many of my colleagues feel uneasy about private equity firms because they bring entirely different interests to the table“, says VuV board member Kitta. The concern: short-term return targets could undermine long-term client interests.

HRK Lunis disagrees. „Our experience with our PE partner JC Flowers was the opposite – constructive and collaborative“, notes Montanhas. The new majority owner, Seven2, brings not only capital but also digital expertise. The investment by Seven2 signals that investors see growth potential in the consolidation of the asset management market.

The motivation behind consolidation is multifaceted. In addition to succession planning, the focus is on economies of scale, increased efficiency, and professionalization. „When you integrate the way we do, you cut costs, reduce complexity, and increase efficiency“, states Montanhas. Resources can be pooled, and new services can be developed – for instance, a shared investment office or digital reporting tools.

Platform providers like Cinerius emphasize that they help their partners „free up more time for client interaction“ by centralizing compliance, IT, and regulatory functions. Growth also comes from add-on acquisitions – smaller asset managers are integrated into existing structures without losing their DNA.

Despite the momentum, consolidation is far from a given. „So far, the number of acquisitions remains quite limited“, says Kitta. The German market is still highly fragmented – with around 425 firms operating in the country.

At the same time, assets under management continue to grow. According to a study by the Institute for Wealth Management, independent asset managers in Germany manage on average around 495 million euros. The number of clients has also reached a historic high, averaging 607 per firm. The industry is thus economically healthy – and still under pressure. Regulation, digitalization, ESG demands, a shortage of skilled labor, and evolving client expectations call for more professionalism without sacrificing individuality.

The consolidation of the independent asset management industry is more evolution than revolution. Successful models strike a balance between efficiency and identity, between scale and entrepreneurship. Or, as Grenzebach of V-Bank puts it: „That’s where partners like us come in – to relieve independent asset managers of operational complexity and enable them to achieve efficiency and innovation.“

DJE Kapital and Flossbach von Storch (FvS) represent a different category in the market. Both manage billions – around 16 billion euros at DJE, over 70 billion euros at FvS – and combine personalized service for high-net-worth clients with a broad offering of funds and mandates. Despite their size, they remain owner-managed. Unlike many smaller firms that become part of platforms or private equity structures, DJE and FvS are not involved in the consolidation trend.