Julius Baer said it has agreed to acquire 95% of the São Paulo-based Reliance Group (Reliance) for an undisclosed amount subject to certain performance conditions.
Reliance is one of the largest independent wealth managers in Brazil with client assets of approximately BRL 17 billion (CHF 5 billion). The closing of the transaction is expected in the second quarter of 2018 and is subject to customary closing conditions and regulatory approvals.
Reliance, which employs a total staff of 70, was established in 1998 and has successfully grown its client base and operations over the years. The company specialises in wealth management services for high and ultra-high net worth individuals and is thus an excellent strategic and cultural fit to Julius Baer. Reliance is profitable, and the transaction is expected to be accretive to Julius Baer’s earnings by a low single-digit percentage. Julius Baer Group’s BIS capital ratios will be impacted by less than 50 basis points.
This acquisition significantly strengthens Julius Baer’s strategic position in Brazil where the Group is already present with the wholly owned GPS Investimentos (GPS), the country’s largest independent wealth manager with client assets of BRL 27 billion (CHF 8 billion) and over 120 employees. With this acquisition, Julius Baer increases its client assets managed out of Brazil to approximately BRL 44 billion (CHF 13 billion).
The 13 partners of Reliance will continue to lead the business with the same team and with its well-established name under the coordination of Julius Baer. Once the transaction is closed, it is envisaged that Julius Baer, together with Reliance and GPS, will determine the best way forward to define potential synergies in a strong mutual cooperation.
Beatriz Sanchez, Head Latin America and Member of the Executive Board of Bank Julius Baer & Co. Ltd., commented: “We are pleased to be acquiring Reliance which will highly complement our existing business for the benefit of all clients. The combination will form the undisputed leading independent wealth manager in Brazil and demonstrates our long-term commitment to this core strategic market.”
Marcelo Steuer, founding partner of Reliance, added: “This transaction guarantees continuity for our independent wealth management model offered to our clients. Joining the leading Swiss private banking group, Julius Baer, with its pure private banking model and global market know-how will add international scale and access to our offering, for the benefit of all stakeholders.”