Julius Baer has agreed to divest its Brazilian wealth management business Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários (Julius Baer Brazil) to Banco BTG Pactual (BTG).
BTG is an investment bank and asset management firm based in São Paulo, Brazil.
The proposed transaction is anticipated to close in the first quarter of 2025, subject to certain customary closing conditions, including regulatory approvals.
Upon closing, the Swiss wealth management firm will continue to service Brazilian clients from its other locations, ensuring the Brazil International business remains unaffected.
The transaction will be 30bps accretive to Julius Baer’s common equity tier 1 (CET1) capital ratio upon closing, based on a total cash consideration of BRL615m ($100m).
Julius Baer Americas and Iberia head Carlos Recoder 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.”
Julius Baer has a presence in the Americas and Iberia regions, including Mexico, Chile, Uruguay, Colombia, and Spain.
With offices in São Paulo, Belo Horizonte, and Rio de Janeiro, Julius Baer Brazil is an independent wealth manager in Brazil.
It has a high-calibre client base, focused on high and ultra-high-net-worth segments, and experienced relationship managers and investment professionals.
Julius Baer Brazil had assets under management of BRL61bn ($10bn), as of 30 November 2024.
