9th January 2025 – (Sao Paulo) BTG Pactual has finalised an agreement to acquire the Brazilian domestic wealth management division of Swiss private banking group Julius Baer for BRL 615 million (approximately $100.7 million). This unit, known as Julius Baer Brazil, caters to high and ultra-high-net-worth clients across major cities such as Sao Paulo, Belo Horizonte, and Rio de Janeiro. As of November 30, 2024, the business managed assets totalling BRL 61 billion ($9.98 billion).
The transaction is expected to be completed in the first quarter of this year, pending regulatory approvals. Julius Baer anticipates that the sale will enhance its CET1 capital ratio by nearly 30 basis points upon completion. Despite the sale, the bank will retain its Brazil International business, continuing to serve Brazilian clients through its other global locations.
Carlos Recoder, head of Julius Baer Americas and Iberia, stated, “The acquisition by BTG, a leading domestic financial institution, will enable us to provide an enhanced multi-family office approach and better investment capabilities for our clients.”
Meanwhile, BTG Pactual, established in 1983, currently manages over $335 billion in client assets and operates across various regions, including Chile, Argentina, and the US.
In related news, Stefan Bollinger is set to step into the role of chief executive at Julius Baer Group Ltd on Thursday. His appointment marks the first permanent leadership change since Philipp Rickenbacher’s resignation in February 2024. Investors are now keen to see how Bollinger will address profitability and the resumption of shareholder payouts, following a challenging period for the bank.
Bollinger faces significant challenges, including reducing costs and dealing with the aftermath of a $700 million exposure to real estate tycoon Rene Benko. Analysts highlight the need for decisive action to restore growth and meet financial targets, as Julius Baer seeks to enhance its market position post-acquisition.
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