ZURICH (Bloomberg) ? EFG International, a Swiss bank catering to wealthy investors, bought Capital Management Advisors from the founders, Sabby Mionis and Angelos Metaxa, to expand its hedge-fund business.

The estimated price will be less than ten times CMA's 2005 net profit, Zurich-based EFG said today without giving more details. About half of the price for the Bermuda-based business will be paid now and the remainder over a five-year period, EFG said.

EFG is the third Swiss-based private bank since September to acquire a manager of hedge funds, investments for wealthy investors and institutions that aim to make money from falling as well as rising asset prices. Julius Baer Holding AG bought GAM from UBS AG and Vontobel Holding AG acquired Harcourt Investment Consulting AG.

"In terms of strategy, it's similar to what we've seen several other players do," said Matthew Clark, an analyst at Keefe, Bruyette & Woods Ltd. in London. "They are all looking at selling higher-margin non-traditional products to their clients."

CMA, which was founded in 1997 and has offices in Wessex House on Reid Street, managed some 2.1 billion Swiss francs ($1.6 billion) as of December 31, mostly in funds that invest in other hedge funds. The business may contribute about 20 million francs to net profit this year, EFG said.

EFG managed client assets of about 47.3 billion francs at the end of last year, including 5 billion francs in hedge funds. It's buying CMA because demand from affluent clients has made hedge funds the "single fastest-growing portion of assets we have," chief executive officer Lawrence Howell said on a conference call.

The shares rose 30 centimes, or 0.9 percent, to 35.55 francs in Zurich, valuing EFG at 5.21 billion francs. They have gained 1.6 percent this year, less than all but two companies on the Swiss Exchange's 23-member banking index.

EFG raised 1.4 billion francs in a share sale in October to fund its expansion. The private bank, whose biggest shareholder is Greece's Latsis family, said earlier this month it was in talks with several businesses it may want to buy.

The bank, which made six acquisitions last year, is still examining other potential targets and expects "some of them will crystallise" before the end of June, chief financial officer Rudy van den Steen said on the conference call.