Julius Baer Group announced an agreement to sell its domestic Brazilian wealth management business, Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários Ltda. (Julius Baer Brasil), to Banco BTG Pactual S.A. (BTG).
Julius Baer will continue serving Brazilian clients from other locations, ensuring that its international Brazil business remains unaffected. In the Americas and Iberia region, Julius Baer has a presence in Mexico, Chile, Uruguay, Colombia, and Spain, according to the firm’s statement.
In addition to BTG Pactual, other financial institutions expressed interest in acquiring Julius Baer’s Brazilian operations. Competitors included Santander Brasil, Banco Safra, and XP Inc.
Julius Baer’s decision to sell its Brazil unit stems from challenges faced by this operation in recent years. Assets under management in the country declined from BRL 80 billion (USD 13.014 billion) to approximately BRL 50 billion (USD 8.134 billion), indicating a significant contraction, according to local media information.
Julius Baer Brasil, with offices in São Paulo, Belo Horizonte, and Rio de Janeiro, is a leading independent wealth manager in Brazil with a high-caliber client base focused on high-net-worth (HNW) and ultra-high-net-worth (UHNW) segments, as well as experienced relationship managers and investment professionals. As of November 30, 2024, it managed approximately BRL 61 billion in assets (nearly USD 10 billion).
The transaction is expected to enhance Julius Baer’s CET1 capital ratio by approximately 30 basis points upon closing, based on a total cash consideration of BRL 615 million (approximately USD 100 million), according to the firm’s statement accessed by Funds Society.
The deal is subject to customary regulatory approvals and is expected to close in the first quarter of 2025.
“After a thorough review of our domestic business in Brazil over the past 12 months, it was concluded that, in the best interest of our clients, it is important to preserve the multi-family office approach while enhancing investment capabilities and updating technology. The acquisition of our domestic Brazilian franchise by BTG, a leading national financial institution, makes this possible and enables a compelling and differentiated value proposition for our clients and employees,” said Carlos Recoder, Head Americas & Iberia, Julius Baer.
For the sale process, Julius Baer engaged Goldman Sachs as its financial advisor. The Brazilian operation, focused on the wealth management segment, has offices in São Paulo, Rio de Janeiro, and Belo Horizonte. The transaction is estimated to be valued between USD 130 million and USD 195 million, representing approximately 1.6% to 2.4% of the assets under management.
With this acquisition, BTG Pactual strengthens its position in the Brazilian wealth management market, expanding its client base and assets under management. The integration of Julius Baer Brasil’s operations could generate synergies and bolster BTG’s presence in the high-income segment, consolidating its expansion strategy in the national financial sector.
For Funds Society, Brazil