Julius Baer announced on Tuesday that it has signed an agreement to sell its Brazilian wealth management subsidiary, Julius Baer Brasil Gestão de Patrimônio e Consultoria de Valores Mobiliários (Julius Baer Brazil), to Banco BTG Pactual.

The bank will continue to serve Brazilian clients from other locations, and the sale will not affect its international business in Brazil, according to the announcement.

Julius Baer Brazil operates as an independent wealth manager focusing on the high-net-worth and ultra-high-net-worth client segments. As of the end of November 2024, the unit managed assets equivalent to 9 billion francs.

«Thorough Review» of Brazil Business

The transaction is expected to increase Julius Baer’s CET1 capital ratio by approximately 30 basis points, based on a total cash consideration of 91 million francs.

Carlos Recoder, Head Americas & Iberia at Julius Baer, said: «After a thorough review of our domestic business in Brazil over the past twelve months, we concluded that maintaining a multi-family-office approach, while further enhancing investment capabilities and improving technology, is in the best interest of our clients. The acquisition of our Brazilian business by BTG, a leading domestic financial institution, enables this and provides a compelling and differentiated value proposition for our clients and employees.»

Stake in EFG International

The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2025.

Banco BTG Pactual is a prominent player in Switzerland, holding nearly 20 percent of EFG International, making it the second-largest shareholder after the Greek founding family, Latsis, which owns 45%. In early 2024, speculation arose about a potential acquisition of EFG International by Julius Baer.