EFG International

EFG International grew from a single Geneva private bank (1995) to $175B+ in assets under management through serial acquisitions of mid-sized wealth managers. The company's strategy exploits industry consolidation: regulatory costs (compliance, reporting, technology) force small private banks to sell, while mega-banks (UBS, Credit Suisse) shed non-core units. EFG sits in the middle, acquiring teams and client books at 1-2% of AUM, then cross-selling services and reducing redundant costs. This roll-up strategy works in private banking because client relationships are personal - advisors often bring their books when changing firms - making organic growth slow but acquisition integration fast. EFG's 25%+ operating margins prove that in relationship businesses, disciplined consolidation beats organic growth.