Turning the tide: The journey of rebuilding for success

• Main Authors: THAM, T. Mandy, KONG, Esther, KOH, Juliana
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: External asset management; private equity; wealth management; financial ecosystem; investment management; financial advisory; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/349; https://cmp.smu.edu.sg/case/4916
• Institution: Singapore Management University

This case focuses on the entrepreneurial journey of Sino Suisse Pte Ltd, an external asset manager (EAM) in Singapore. This case is motivated by three observations: (1) the ability of Sino Suisse to rise rapidly from failure in a short span of 3 years to achieve an asset under management (AUM) of US$ 4 billion, (2) the strong conviction of the founder in the “triple-wins” positioning of the EAM business model, and (3) the use of technology to maintain a lean organizational structure. The case examines the motivations of Mr Albert Liu, founder of Sino Suisse, in switching from a salaried employee in private banking to an entrepreneur in 2017. It goes on to explore the entrepreneurship lessons learnt by Liu. The case further presents the business and revenue models of a typical EAM and the value propositions of the EAM model to high net worth clients. It illustrates the “three-win” positioning of an EAM espoused by Liu and continues with the differentiating value propositions of Sino Suisse to clients, which includes: an open architecture with access to products, pricings and markets from multiple private banks and investment banks, an aggregator platform called the “Happy Alliance” which allows other EAMs to participate in idea generation and sharing of best practices, new products and ideas via various channels including seminars, online forum, and events, an exclusive business network called the “Hippo Club” where ultra-high net worth clients of Sino Suisse can source for direct investment deals and philanthropic ideas, among the members. Finally, the case prompts the reader to analyze a key concern of Liu, namely the risk of a negative externality on Sino Suisse from a reputational loss in the broader EAM industry, and brainstorm ways to mitigate this risk for Sino Suisse and the broader EAM sector.