Julius Baer, the Swiss private banking group, has acquired 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 BRL17bn (CHF5bn).
The closing of the transaction is expected in the second quarter of 2018 and is subject to customary closing conditions and regulatory approvals.
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 BRL27bn (CHF8bn) and over 120 employees. With this acquisition, Julius Baer increases its client assets managed out of Brazil to approximately BRL44bn (CHF13bn).
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.”