Gavea and Arsenal Unite Wealth Management

Brazil shops Gavea and Arsenal have merged their wealth management businesses, creating a new company called Gavea Arsenal Gestao de Patrimonio. Gavea partner Marcelo Stallone, tells LatinFinance that the new company, which will have $2.4bn in assets under management, will be among the largest independent wealth management shops in Brazil. “There are only a handful of independent wealth management groups in the country, probably about 10, but it would be fair to say we are among the top three,” he explains, adding that usually wealth management groups are tied to banks. He does not say what stake Gavea would hold in the new company. Arminio Fraga, the founder of Gavea, will lead the company with Stallone and Arsenal partner Fernando Barrozo do Amaral. Arsenal’s M&A and restructuring area, as well as Gavea’s hedge funds and illiquid strategies businesses are not part of this merger and will continue to operate independently.