Julius Baer Group said on 7 January it has agreed to sell its domestic Brazilian wealth management business, Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários Ltda (Julius Baer Brazil), to Banco BTG Pactual S.A. (BTG).
Julius Baer will continue to service Brazilian clients out of other locations and as such, the Brazil International business remains unaffected. In Region Americas & Iberia, Julius Baer has presences in Mexico, Chile, Uruguay, Colombia, and Spain.
Julius Baer Brazil, with offices in São Paulo, Belo Horizonte, and Rio de Janeiro, is an independent wealth manager in Brazil focused on high and ultra-high-net-worth segments.
As of 30 November 2024, it had assets under management of BRL 61bn (CHF 9bn).
The transaction is expected to be approximately 30 bps accretive to Julius Baer’s CET1 capital ratio at close, based on a total cash consideration of BRL 615m (CHF 91m). Closing of the transaction is subject to customary regulatory approvals and expected in the first quarter of 2025.
Carlos Recoder, head Americas & Iberia, Julius Baer, said: “Following a thorough review of our domestic business in Brazil over the past 12 months, it was concluded that for the benefit of our clients it is important to preserve the multi-family office approach, while further enhancing investment capabilities and upgrading technology.
“The acquisition of our domestic Brazilian franchise by BTG, a leading domestic financial institution, makes this possible and allows to deliver a compelling and differentiated value proposition for our clients and employees.”
