Carret to remain focused on the ultra-high net worth market, may look into fintech
CMBC International Holdings (CMBCI) has made an investment in the Asian private wealth management business of Carret Private Investments. The New York-based wealth manager did not disclose the amount invested, but noted in a press release that pursuant to the investment, Carret would 'foster a strong strategic cooperation with CMBCI'.
The partnership will 'develop high end wealth management for Chinese clientele', said Kenneth Ho (pictured), managing partner at Carret in a press release.
The two companies "will also be working closely together to come up with innovative client solutions," said a spokesperson for Caret, although he did not elaborate on what those solutions may constitute. "In general, clients will continue to get the same top-notch, open architecture service that we offered before," said the spokesperson. "However, they will additionally get access to the full product suite of Minsheng. For example, Minsheng is one of the most competitive firms for aircraft financing."
CMBCI is a wholly-owned subsidiary of China Minsheng Banking Corp, which is a commercial bank, with a broad footprint in the China mainland markets.
Carret will remain "heavily focused" on the ultra-high net worth individuals, according to the spokesperson. "We may look at investments that go beyond this segment, specifically fintech, but our focus in the traditional wealth management space will not be diverted."
The announcement comes amid a clampdown by Chinese authorities on the widespread 'wealth management product' investment schemes, following losses inflicted in the wake of last year's Shanghai stock market crash.
Newly-proposed regulations are still open for discussion and may change, but one Shanghai-based senior banker told SRP that, in any case, traditional "non-standard" asset-based, "principal guaranteed" products would inevitably be replaced by net asset value-type as well as structured products.
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