THE combined wealth of high net worth individuals (HNWI) in Asia-Pacific reached US$8.4 trillion in 2006 growing at 10.5 per cent, a rate that is fast outpacing that of Europe and North America, according to the recent Capgemini Merrill Lynch Asia-Pacific Wealth Report 2007.

This significant wealth has largely been generated over the past 30 to 40 years. Almost every private banking client in Asia-Pacific is an entrepreneur - they are mostly first or second generation owners of businesses with their wealth tied to their enterprises and to real estate.

The classical private banking offering no longer serves these entrepreneurs well. They require their bank to have the expertise not only in private wealth management but also in corporate finance such as advising on mergers and acquisitions (M&A) or on initial public offering activities that can help them grow their businesses.

Banks serving this vast entrepreneur segment need to be able to adopt an integrated approach, combining the full range of investment banking, private banking and asset management expertise into leading-edge and tailor-made solutions that can address the entrepreneurs' full range of corporate and personal needs.

For a truly integrated bank like Credit Suisse, we have already seen many cases of our private banking clients with investment banking needs, be it divesting large shareholdings they have, monetising those shareholdings or having certain hedging needs, financing requirements such as shared-backed lending, aircraft, ship or real estate financing or bringing private equity investments into entrepreneur clients' businesses.

In Asia where entrepreneurial ventures drive the economy, Credit Suisse's Integrated Bank is creating a unique position for us to service our clients and has the fundamentals for a true client focus. We have brought together cross-divisional teams of key professionals within our bank, to meet with clients and identify unique value propositions.

For instance, when it comes to customised advisory services for ultra high net worth (UNHW) entrepreneurs, we have an international team of specialists who can advise them not only on corporate finance, M&A services, capital markets solutions, but also real estate and tax issues, as well as the setting up of investment funds and family offices.

They are based across our key hubs in Zurich, Geneva, London, Dubai, Hong Kong, Singapore and New York, and work closely with the respective relationship managers and relevant specialists in Investment Banking and Asset Management.

At the heart of the business - the family and inter-generational wealth transfer

Many entrepreneurs are also running family-owned businesses. The importance of family enterprises in the Asian economy cannot be underestimated - they represent the most prevalent business model worldwide and are also some of the most successful. In fact, an estimated 95 per cent of businesses in Asia are family-controlled (Source: INSEAD).

These family businesses face exciting challenges and have increasingly complex needs as their wealth and businesses are transferred from one generation to the next, in the midst of a fast-changing world driven by rapid social, economic and technology advances.

In Asia, 54 per cent of high net worth individuals are over 56 years of age and intend to distribute 92 per cent of their private wealth, a significant portion of which is derived from business ownership, to their family members or future generations. However, only a very small portion of this wealth is believed to be completely prepared for the massive shift. (Source: Capgemini Merrill Lynch Asia-Pacific Wealth Report 2007)

The next generation is on its way up

It is therefore important for leading global private banks to build relationships not just with the current generation of clients, but also with the second generation who is next in line to succeed as leaders of their family enterprises.

Relevant, well-structured and well-executed "Next Generation" programmes create a platform for a private bank such as Credit Suisse to provide the second generation of clients with a broader understanding of the personal challenges that families and their next generation face, and offer professional insights on how they can navigate these issues. Our primary focus is on education, which is an important value for Asian parents and also demonstrates the bank's commitment to a socially responsible and holistic approach to serving clients.

Since 2003, the bank has been running an annual global "International Program for Young Investors" in cooperation with Switzerland's University of St Gallen Executive MBA faculty. The course provides the second generation of clients a foundation of knowledge and understanding of the financial markets and offers a thorough grounding in the key concepts of managing wealth.

In addition, the "Credit Suisse Asia Pacific Family Legacy Program?" launched in 2006 brings together both parents and offspring and covers topics of relevance to both, such as succession planning, wealth transfer and passing along values and life lessons across generations.

The key to smooth transition is long-term planning, good advice and a shared purpose. Over the years, the bank has built a long-standing reputation as a trusted wealth adviser to many families around the world.

The value of networks and sharing

Our customer insight studies and our long-standing experience in serving entrepreneurs tell us that these high achievers cherish personal business success, the pursuit of knowledge, as well as valuable networking platforms.

Credit Suisse supports and partners with entrepreneur organisations and programmes across Asia, such the Ernst & Young Entrepreneur of the Year Awards, Entrepreneur Organisations and Young President Organisations. By doing so, we seek to make meaningful contribution to creating valuable networking and sharing opportunities for entrepreneurs who are constantly seeking to grow and internationalise their businesses.

The changing demands of entrepreneurs in Asia-Pacific will favour banks that set themselves apart through a strong client centric focus and a powerful brand, that can leverage their global reach and cross-divisional services and capabilities. With unique offerings and programmes that cater specifically to different client segments, an integrated global bank like Credit Suisse is in the best position to address both the personal and business needs of entrepreneurs.

Dr Francois Monnet is head of private banking South-east Asia and Australasia for Credit Suisse

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