Marco Garzetti plans a stake in fund manager GAM to maintain its independence

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Entrepreneur Marco Garzetti has said he will invest 65 million francs in GAM as an alternative to the planned acquisition of Liontrust and will do “whatever it takes” to keep the Swiss fund management group independent.

Garzetti on Friday said he disagreed with GAM’s board that London-listed investment boutique Liontrust’s £96m total share offer was in the best interests of all interested parties.

“On the contrary, I am convinced of it GAM it will continue to have many advantages as an independent Swiss asset management company in the future,” said the Swiss entrepreneur in an open letter to GAM shareholders.

The offer from Garzetti, who formed Taure Invest with the aim of investing in GAM, marks the latest twist in the Swiss asset manager’s attempts to secure his future and could undermine his sale to Liontrust.

GAM twice postponed its full-year results to find a buyer after five turbulent years for the company marred by falling stock prices and customer outflows.

Garzetti said he and Taure’s colleagues presented a plan to the GAM board, saying he was ready to make “a long-term commitment” to “radically turn the company upside down and start over.”

Garzetti, who holds an 84% stake in Taure, added: “Together with the Swiss partners, I am willing to put GAM back on the path to success, both with financial resources and personal commitment. We will do whatever it takes.”

Garzetti, who has been involved in the wealth management industry for more than three decades, said he would invest 34 million francs in newly issued GAM shares to become the majority shareholder and provide a 31 million francs loan to “ensure the urgently needed liquidity”.

It said GAM could achieve a pre-tax profit of CHF50 million in 2026 and noted that Taure had already made “extensive preparations” for the sale of GAM’s fund services business. Taure also reportedly overhauled GAM’s board and management team.

Liontrust, which made its offer earlier this month, is also planning to sell GAM’s fund services arm, but will retain the investment management business, to create a £53bn asset manager. Liontrust will provide two loans of up to £17.8m to help refurbish GAM.

However, the deal has faced backlash from other quarters. A group of investors led by French telecommunications billionaire Xavier Niel acquired a stake in GAM, which it plans to increase to at least 10%.

The group led by Niel said a few days after the closing of the Liontrust deal that the acquisition “unnecessarily favors the offeror and is contrary to the principles of Swiss acquisition law”.

GAM has had a disastrous time since a scandal erupted over its illiquid debt reserves in 2018.

His former top fund manager Tim Haywood had bought bonds from companies linked to Lex Greensill’s now-bankrupt supply chain finance business, Greensill Capital, which counts former Prime Minister David Cameron as an adviser. Haywood’s funds were eventually liquidated.

GAM and Liontrust declined to comment.