Max-Hervé George: The Unconventional Journey of a Financial
Innovator
Max-Hervé George, born on March 28, 1989, is a notable
figure in the realms of entrepreneurship and property development, hailing from
Metz, France. He currently serves as the Chairman and CEO of Icona Capital and
previously co-founded and held the CEO position at Ultima Capital Group.
Despite his French roots, George spent a significant period in Switzerland
before relocating to London, United Kingdom, where he is presently based.
Apart from his ventures in entrepreneurship and property
development, Max-Hervé George is renowned for his management of a distinctive
financial investment instrument known as the life insurance contract "à
cours connu." This involvement has led to an enduring legal battle with
the insurer Aviva.
Early Life and Education
Max-Hervé George, born in March 1989, is the youngest member
of his family and spent his formative years in Metz, France, alongside his
brother and sister. Even from a tender age, George displayed a keen fascination
with economics and finance, foreshadowing his future endeavors.
Academic Journey and Career Transition
Following the completion of his baccalauréat in economics at
the Institut Pilâtre de Rozier in 2008, George embarked on his academic
pursuits at the University of Paris X, where he pursued studies in law.
However, in 2010, he made the decision to depart from university to concentrate
on his initial forays into entrepreneurship, particularly in the realms of real
estate investments and private equity.
The Magic Ticket: A Life Insurance Contract's Financial Tale
At the age of seven, Max-Hervé George received a remarkable gift from his father—a life insurance contract that seemed to possess magical powers. This contract, akin to a time-traveling ticket, allowed George to make investments with the benefit of perfect hindsight, steadily accumulating wealth week after week.
A Remarkable Gift: The Origins of George's Life Insurance Contract
The essence of this financial magic lies in the unique features of the life insurance contract. Now 25, George has spent years battling in the French courts to safeguard the extraordinary benefits it offers. With its potential, George could amass a billion-dollar fortune by the end of the decade, surpassing even the value of the insurance giant Aviva France, which underwrites the contract.
The Tale of Grand Folly: L'Abeille Vie's Worst Contract
However, behind the facade of this financial marvel lies a tale of profound folly—a story of how a French insurer, L'Abeille Vie, devised what could arguably be deemed the worst contract in the world and distributed it to thousands of clients.
Financial Marvel or Folly? The Unique Features of the Arbitrage Contract
In 1987, L'Abeille Vie introduced a specialized offering for its affluent clientele: the Fixed Price Arbitrage Life Insurance Contract. Unlike traditional life insurance products, where clients allocate funds among various investment options, this contract offered a unique twist. Prices for the investment funds were published weekly, allowing clients to switch between funds at the published prices, irrespective of market movements in the interim.
Termed as an "arbitrage" by L'Abeille Vie, this contract essentially bestowed upon clients a lucrative opportunity. Whether the stock market experienced an upswing or downturn, clients could exploit the system by purchasing assets at last week's prices, thereby reaping substantial gains with each transaction.
Understanding "Known Price" Contracts
In the past, before the internet made everything easily accessible, buying and selling investments wasn't as simple as clicking a button. Investors had to go through brokers or visit them in person, which could take days to complete a trade. During this time, the market could change, making it risky to trade at outdated prices.
The Rise of "Known Price" Contracts
Insurance companies like L’Abeille Vie offered special contracts to their wealthy clients in the late 1980s. These contracts allowed clients to trade investments at prices published each week, even if the market had changed in the meantime. It was like a gift to investors, but it came with significant risks for the insurance companies.
The Recognition of Risks
As financial information became more accessible in the 1990s, insurance companies realized the dangers of offering hindsight investment terms. They started persuading clients to amend their contracts, offering them money to give up the right to trade at outdated prices. However, changing the terms of insurance contracts isn't easy, as regulators ensure the integrity of contracts.
The George Family's Experience
In 1997, the George family invested in L’Abeille Vie's "known price" contracts. Despite the company later stopping the sale of these contracts and trying to convince policyholders to give up their rights, the George family refused to sign new papers. They continued to take advantage of the contract's terms, carefully navigating the legal system to protect their investments.
Establishing Ultima Capital
In 2012, Max-Hervé George embarked on a significant venture
by co-founding Ultima Capital alongside Byron Baciocchi. Under their
stewardship, the company rapidly ascended, amassing assets valued at an
impressive $1 billion.
Transformation and Expansion
During the same year of its inception, Ultima Capital made a
notable acquisition by purchasing the Sport Hotel Rutti in Gstaad, a renowned
ski resort frequented by the jet set. Subsequently, the property underwent a
transformative process, with the original structure being demolished to pave
the way for the construction of Ultima Gstaad hotel. This upscale establishment
was unveiled to the public in December 2016, marking a significant milestone
for Ultima Capital.
Strategic Move to the Stock Exchange
In August 2019, Ultima Capital SA made a strategic move by
listing on the BX Swiss stock exchange, further solidifying its position in the
market. Throughout this period of evolution, Max-Hervé George remained at the
helm as CEO, steering the company towards continued growth and success.
Stake Sale and Enterprise Value
In a noteworthy development, Max-Hervé George made a strategic decision to divest his 33% stake in Ultima Capital to a Luxembourgian investment group in November 2023. The transaction, valued at an estimated $1.4 billion in enterprise value, underscored the significant achievements and value generated by Ultima Capital under George's leadership.
Expansion into Real Estate and Investments
Max-Hervé George's entrepreneurial ventures extended to the
realm of real estate and investments, exemplified by his role as the founder
and chairman of Icona Capital. Notably, by the end of 2022, Icona Capital
acquired a substantial 40% stake in Swiss real estate developer Stoneweg,
heralding a significant expansion in its investment portfolio. This move also
marked the launch of a formidable €8 billion investment platform.
Max-Hervé George: The Unconventional Journey of a Financial Innovator / Biography of Max-Hervé George:
Real Estate Development and Commercial Ventures
George demonstrated his prowess in real estate development
through the purchase of land near Geneva, Switzerland. He meticulously
conceptualized, oversaw the development, and managed the construction of a
commercial complex on the acquired land, ultimately bringing the project to
fruition and successful launch. Subsequently, the completed commercial complex
was sold in 2015, showcasing George's acumen in real estate ventures.
Entrepreneurship in Luxury Retail
In 2015, Max-Hervé George ventured into the luxury retail
sector with the launch of the Duchessa brand. This endeavor culminated in the
opening of the first boutique in Etoy in June 2016, marking a significant
milestone in George's entrepreneurial journey. However, in 2021, Duchessa
underwent a transition when it was acquired by the Geneva-based M3 Groupe,
signaling a strategic move in George's business portfolio.
Diversification through Strategic Acquisitions
Max-Hervé George strategically diversified his investment
portfolio through various acquisitions, including a notable 20% stake in an
independent Swiss private bank. Additionally, in 2021, George facilitated two
pivotal acquisitions in the real estate sector, namely the acquisition of the
Liffey Park Technology Campus in Ireland from Blackrock and the procurement of
a former bottling plant in Spain. These strategic moves underscored George's
commitment to expanding his business interests across diverse sectors.
Long-standing Legal Battle with Aviva
Max-Hervé George has been embroiled in a protracted legal
dispute with Aviva for over a decade, spanning back to 2007. The legal
wrangling, which has extended to 15 years when factoring in his parents'
involvement, represents a significant and enduring challenge for George.
Legal Victories and Ongoing Litigation
Despite facing formidable opposition from Aviva, George
achieved a significant legal milestone in September 2014 when the French
Supreme Court ruled in favor of the George family. The court's decision
affirmed the legality of life insurance contracts containing the "known
price" clause, providing George with a crucial victory. However, the legal
saga continues, with George currently engaged in a second phase of litigation
aimed at obtaining recognition and compensation for the damages incurred.
Broader Implications and Criticisms
The legal battle between George and Aviva has garnered
attention due to its broader implications and potential ramifications. It is
estimated that around 30 other individuals are entangled in similar legal
disputes with Aviva, indicating the widespread nature of the issue. Criticism
has been directed towards Aviva for its handling of the "known price"
contracts, with allegations of failure to disclose associated risks adequately.
This lack of transparency has raised concerns among shareholders and
policyholders, further intensifying scrutiny on Aviva's practices.
Business Impact and Strategic Decisions
In a strategic move, Aviva decided to divest its French
business to Aema Group on 23 February 2021. This decision marked a significant
development in the ongoing legal saga and reflected Aviva's efforts to mitigate
risks and refocus its business priorities. The sale of its French operations
underscores the complexities and challenges inherent in the legal dispute with
George and others, shaping Aviva's
Recognition and Achievements
Max-Hervé George's entrepreneurial prowess gained widespread
recognition, earning him a coveted spot on the Forbes 30 under 30 list in 2019.
His remarkable achievements were further highlighted when he graced the cover
of Forbes, solidifying his status as a prominent figure in the business world.
Notable Contributions and Wealth Accumulation
In June 2020, George's entrepreneurial endeavors garnered
acclaim, positioning him among the top young entrepreneurs in Europe. Reports
indicated his significant involvement in transactions worth billions of Euros,
underscoring his impactful contributions to the business landscape.
Additionally, George's remarkable success led to his inclusion in the esteemed
list of the top 100 successful young individuals and the 300 richest
individuals, as recognized by Swiss magazine Bilan. By 2022, George's personal
fortune was estimated to range between 400 million and 500 million euros,
further solidifying his position as a formidable business tycoon.
Philanthropic Engagements and Sporting Affiliations
Beyond his business ventures, Max-Hervé George is actively
engaged in philanthropic initiatives and holds a notable position as a partner
of the International Judo Federation (IJF). His involvement in the sporting arena
was prominently displayed during the 2020 Summer Olympics in Tokyo, where he
participated alongside Marius Vizer, President of the IJF. Notably, George had
the honor of presenting medals in the Judo Men Heavyweight category, showcasing
his commitment to supporting and promoting sporting excellence on a global
stage. His presence alongside esteemed figures like HSH Albert II and French
President Emmanuel Macron further underscores his influence and stature in both
business and sporting realms.
