News
GILD Bankers closed its Private Banking business line
GILD Bankers` Partners decided to close the Private Banking business line that provided portfolio management and other consultancy services mostly to Estonian and Lithuanian high net worth individuals during two years of operations. Despite the difficult operational environment GILD Private Banking managed to preserve positive returns in the client portfolios under full management in 2008 and in the first half of 2009. However, negative market developments driven by the financial crisis made it increasingly difficult to develop the business further and involve new clients.
Rain Tamm, Managing Partner of GILD Bankers says that challenging times compel difficult choices: „Financial crisis started to influence our newest business line at the time, when we had finalized the implementation of a suitable infrastructure and assembled a highly professional team to provide the services in full capacity. Involving new clients became more difficult, as our target group is currently channelling their liquid assets elsewhere, for example to raise capital in their own companies. GILD Partners made a strategic decision to cut back the Private Banking business line in the beginning of the year. In June Partners decided to close the business line and this process has been finalised by today. Today it is clear that in order to maintain and raise the quality of services we would need a much larger team. However, we have decided to focus on our two established business lines. We are glad that our Private Banking team members in Estonia and Lithuania have proved to be sought after employees in the financial sector also in difficult times. I regard highly the competence of Martin Hendre, the Head of the unit, and his valuable contribution over the last two years."
Martin Hendre, who led the GILD Private Banking, adds: "I am especially pleased that over the course of our operations, we among else successfully advised several high net-worth investor groups in the Baltics on their tactical portfolio allocation and security selection covering a wide global universe of global equities and other asset classes. Especially in 2008, we were able to provide value to clients by protecting their investment portfolios from significant value decline over the course of the financial crisis, as well as later position their portfolios to take advantage of the receding of the crisis over years 2009-2010." Martin Hendre will move to Danske Capital Estonia, where he managed investment activities prior to joining GILD in 2007.
GILD continues with two business lines, investment Banking and management of alternative Funds, which were established already in 1999.
For further information, please contact:
Kadri Kütt
Communication Manager
GILD Bankers
+ 372 56 800 467
kadri.kytt(at)gildbankers.com