Interview with the top management of First Private: "I wasn't looking for an exact copy, but rather targeted complementarity"

Private Banking Magazine: Mr. Klein, you founded First Private in 2003 through a management buyout. Looking back today, what key milestones come to mind?

Tobias Klein: The journey actually began during my time at Salomon Brothers. There, we developed methodological approaches and convictions that still form the core of our investment philosophy today. Taking the step into self-employment was a combination of careful preparation and the courage to seize an opportunity.

But the people have always been crucial: my founding partners, but also colleagues from New York who supported our spin-off, as well as loyal customers who have accompanied us on our journey. This partnership-based approach remains central to this day.

It was clear to me from the beginning that First Private had to convince not only through performance and processes, but also through closeness and personality – systematically and at the same time humanly.

How do you ensure that this spirit is maintained even as the company grows?

Klein: Not through rules or statutes – but through selecting the right people. We make sure to find employees who share our convictions and values, are capable of scientific work, and at the same time enjoy delivering quality as part of a team. A good balance between heart and method is not just a slogan for us, but a lived reality.

Mr. Preininger, you are now taking over the leadership. How did you organize the transition?

Alexander Preininger: From the outset, our focus was on continuity, not on rapid changes for the sake of change. Through intensive discussions with the team, we built trust, and we deliberately allowed ourselves a longer transition period to demonstrate that a smooth transition is possible.

Continuity on the one hand and original impulses on the other.

Preininger: Exactly. I don't want to turn everything upside down, but I do want to set priorities in certain areas. Courage to innovate and openness to fresh ideas are essential. The crucial thing is that changes are well-considered and comprehensible, not impulsive or dogmatic.

Mr. Klein, how difficult was it for you to choose your successor? Didn't you want to find a "Tobi 2.0"?

Klein: That would have been exactly the wrong approach. I wasn't looking for an exact copy, but rather targeted complementarity. First Private had evolved over the years – growth always occurs at the edges, and you can't exclude the top. I knew that Alexander, with his experience in large organizations and international markets, could open up new perspectives for us.

Continuity is ensured by our backbone, our long history of success within the partner network led by Martin Brückner, our CIO in Portfolio Management, and Richard Zellmann, who heads Sales and Marketing. As CEO, Alexander can rely on the experience, commitment, and trust of all key personnel at First Private.

Mr. Preininger, how do you experience the team during this phase?

Preininger: For me, it is a great privilege to be part of a company where colleagues like Martin Brückner and Richard Zellmann are already well-established. Martin contributes his in-depth expertise to the quality of the investment processes, while Richard brings sales strength and international experience.

The rest of the team shouldn't be forgotten either. Their reliability and competence mean that I'm not starting alone, but can build on an experienced foundation.

First Private excels in systematic strategies and quantitative approaches. How do you make such strategies internationally attractive?

Preininger: By not trying to copy the big firms, but rather developing niche strategies with a clear positioning. One focus is on merger arbitrage – a niche with growth potential – as well as on quantitative European equity strategies with a value or dividend focus. It's about defining and expanding our own strengths, but also working on new ideas.

Klein: Storytelling can help build trust, but performance is key. We recognized early on that the success of scientifically systematic work is more convincing in the long run than narratives. And we make our customers feel that – through transparency down to the smallest detail.

What are the next growth steps?

Preininger: First, we need to become more international – to leverage partnerships and identify regions where we can gain a foothold. Internally, this means strengthening the team and making sales and marketing more international. Scaling is possible if we consistently stick to the implementation.

So far, they have primarily targeted institutional clients. Are there any ambitions to enter the retail market?

Preininger: Our focus remains on institutional investors; that's in our DNA. This includes fund of funds and less regulated family offices and asset managers. However, with our Quantum product, we also have a product that potentially appeals to the retail sector, featuring a strong AI approach. But focusing too heavily on the mass market would be strategically risky and not very promising.

How will success be measured in the coming years?

Preininger: Growth should be measured not only in assets under management, but also in reputation and business breadth. Merger arbitrage should be a distinguishing feature – we are striving for European leadership.

At the same time, we want to use our KVG license to develop further business areas: launching funds for new partners and offering innovative services. We are deliberately aiming to broaden our business model. We are targeting over €2 billion for the next two years. in the quantitative area. That's ambitious, but achievable.

Mr. Klein, how do you see the future of boutiques in a market that is increasingly characterized by pressure and consolidation?

Klein: Consolidation is not a new phenomenon – and it always creates opportunities. We benefit from it because our specialization and our expertise as an investment management company (KVG) allow us to offer other providers options. Our guiding principle is: "Small enough to care, big enough to deliver." We don't need to be huge, but we do need to remain excellent. What remains crucial is: close customer relationships, excellent employees, and a clear focus.

What are your personal wishes?

Klein: Above all, stability in our customer relationships, characterized by close collaboration and excellent results. More important than ever, however, is the ability to constantly reinvent ourselves – every year like a new beginning, " Always Day One".

If we look at First Private in ten years – what will we see?

Klein: An organization that has continuously renewed itself without losing its roots – remaining young in spirit, but growing in impact.

Mr. Klein, now that you are no longer CEO but are moving to the supervisory board – how will you use your newly gained time?

Klein: And the youngest of our three children has just left home. But no, I certainly won't be bored; I'll remain managing director of our holding company, which includes re:cap and FP Lux. I would definitely welcome some downtime, though. My wife and I have quite a few things on our to-do list…

About Klein, Preininger and First Private

Tobias Klein shaped First Private as CEO for over two decades. Under his leadership, the Frankfurt-based boutique fund manager developed a focus on rules-based, quantitative investment strategies. As part of the management change, Klein will move to the company's supervisory board.

Alexander Preininger became Deputy CEO of First Private in January 2025 and, following approval from the German Federal Financial Supervisory Authority (BaFin) in August, took over as CEO from Tobias Klein. Previously, Preininger held various international management positions at DWS, Amundi, and Robeco . He brings extensive experience in asset management and focuses on sustainable growth strategies and technological advancements.

First Private, founded in 2003, is a boutique fund manager with 26 employees, specializing in rules-based, quantitative strategies in equities and liquid alternatives. With approximately €3.3 billion in assets under management (as of mid-2025), the company serves institutional and private investors. First Private utilizes cutting-edge technologies such as artificial intelligence and operates its own investment management company (KVG) license as well as a platform for external asset managers. Its focus is on merger arbitrage strategies and multi-strategy funds.