Deal of the Year: BTG Pactual Acquires Julius Baer's Brazilian Asset Management

Exciting developments are taking place in the international financial sector: The Brazilian financial giant BTG Pactual has signed a landmark agreement to acquire the Brazilian wealth management business of the renowned Swiss private bank Julius Baer. The purchase price amounts to an impressive 615 million reais (approximately 100.7 million US dollars). This unit, known as Julius Baer Brazil, focuses on servicing wealthy and ultra-wealthy clients in the vibrant metropolises of São Paulo, Belo Horizonte, and Rio de Janeiro. As of November 30, 2024, the company managed an astonishing 61 billion reais (around 9.98 billion US dollars) in assets. With the successful conclusion of this deal, Julius Baer expects an increase in the CET1 capital ratio by almost 30 basis points, which should further strengthen the bank's resilience. However, Julius Baer will not completely withdraw from Brazil. The bank will continue its international Brazilian operations and remain available for its clients from other locations. The sale is expected to be completed in the first quarter of this year, provided all regulatory requirements are met. This strategic adjustment was decided after a comprehensive review of the Brazilian business over the past 12 months. Particularly pleasing: By acquiring the Brazilian franchise from a leading local financial institution like BTG Pactual, Julius Baer hopes to offer clients a compelling and differentiated value creation strategy. Recently, Julius Baer also appointed four new relationship managers at its St. Gallen location to better serve the eastern part of Switzerland. Thus, the bank remains on track not only in South America but also strengthens its presence in Europe.