Private Bank Wealth Management
Private bank wealth management refers to investment and advisory services provided by banks to high-net-worth individuals and families.
Allocator relevance: Important to distinguish from family offices—often advisory-led, with different decision authority and product access dynamics.
Expanded Definition
Private banks offer portfolio management, lending, trust services, and access to investment products. Decision authority can sit with the client, with bank advisors influencing allocation choices. Some private banks provide discretionary mandates; others are advisory-only. They may also distribute proprietary products, creating potential conflicts of interest.
For fundraising, private banks can act as allocators in discretionary programs or as channels to underlying families—but routing requires role validation.
How It Works in Practice
Clients work with relationship managers and investment advisors. Allocations may follow model portfolios, committee-approved lists, or bespoke mandates. Access to alternatives often comes through bank platforms or feeder structures.
Decision Authority and Governance
Governance varies: banks often have product committees and compliance frameworks, but client-level authority differs by mandate type. Understanding whether the bank is a decision-maker or an influencer is key.
Common Misconceptions
- Private banks are equivalent to family offices.
- Private bank contacts can allocate capital directly.
- Conflicts are irrelevant if returns are strong.
Key Takeaways
- Discretionary vs advisory defines true allocator role.
- Product distribution incentives can shape recommendations.
- Role validation prevents mis-targeting.