In an industry often criticized for misaligned incentives and excessive intermediation, Paragon Capital Management (Paragon) has emerged as a standout independent wealth manager. Founded in 2017 by a former private banker disillusioned with institutional constraints, the firm has grown from S$180 million in assets under management (AUM) in its first year to S$1.2 billion today.
In January, the Singapore-based asset management firm opened its first overseas office in Hong Kong, joining a growing number of wealth managers in tapping more UHNW clients in the region.
Breaking away from the banking model
The genesis of Paragon stemmed from a fundamental critique of traditional wealth management.
“In 2017, I had a clear idea that to better help my clients in their developmental journey, I had to be more independent—outside of organizations constrained by internal policies and investment views,” Paul Lee, co-founder, CEO & CIO of Paragon Capital Management, told AsianInvestor Wealth.
The industry’s transactional nature was a key pain point. “Transacting often for the sake of transacting is not in clients’ long-term interests,” he noted. “The misalignment between banks’ and clients’ needs drove me to found Paragon.”
Unlike traditional private banks that rely on product distribution fees, Paragon operates on a fiduciary model, prioritizing “alignment with clients’ interest and adding value to their portfolios—not just in P&L terms, but through advice, service, and securing the best possible pricing.”
The firm invests with a long-term owner’s mindset. “If a profitable company’s stock drops 20%, we buy more. Would you sell your own business just because of a bad year?” This contrarian stance has helped the fund navigate volatile markets while maintaining a concentrated, high-conviction portfolio.
Skin in the Game
Paragon enforces strict co-investment rules to ensure alignment. “Every portfolio manager must invest their own capital in their strategies,” the founder added. “My family’s wealth is alongside our clients’ in Paragon’s fund.”
Last year, the firm introduced an employee co-investment scheme, turning team members into stakeholders. “Skin in the game ensures alignment,” a principle borrowed from legendary investors like Warren Buffett and George Soros, Lee noted.
Despite rapid AUM growth, Paragon remains selective in hiring.
“Talent is our most valuable and expensive resource. We grow deliberately as the right hires will help to sustain our trajectory,” he said.
Advices for young wealth managers
For young finance professionals, Lee’s advice is unequivocal: “Focus relentlessly on clients. Technical expertise is baseline; trust is the differentiator.” He acknowledges the challenges—”It’s not easy—but if you do it, you’ll succeed.”
“Institutional constraints exist, but clients remember who prioritized their interests. That’s how you build a career,” he said.
Source: Click here
Credit: Haymarket Media Limited (By Twinkle Sparta)