Banks Julius Baer sells Brazilian domestic business to BTG Pactual
The Julius Baer Group is selling its local wealth management business in Brazil to Banco BTG Pactual S.A. (BTG). A corresponding agreement has been signed, according to a press release issued on Tuesday.
07.01.2025, 07:36
SDA
The company being sold is Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários Ltda. with assets under management (AuM) of 61 billion Brazilian real or 9 billion Swiss francs as at the end of November 2024.
With offices in São Paulo, Belo Horizonte and Rio de Janeiro, the company is a "leading independent wealth manager in Brazil with a high-caliber client base focused on the high and ultra-high net worth segment", according to the statement.
Julius Baer will continue to serve its Brazilian clients from other locations, so that the international business there will not be affected by the transaction, the statement continues. In the Americas & Iberia region, the Zurich-based bank is also represented in Mexico, Chile, Uruguay, Colombia and Spain.
The bank expects the transaction to increase its CET1 capital ratio by around 30 basis points at the time of closing, based on a total cash payment of 615 million real (CHF 91 million). Closing of the transaction is subject to customary regulatory approvals and is expected in the first quarter of 2025.
After a "thorough review" over the last twelve months, it was concluded that a sale to BTG and thus to a leading domestic financial institution offers a "compelling and differentiated value proposition" for clients and employees, said Carlos Recoder, Head Americas & Iberia at Julius Baer, according to the press release.
