Brazil’s BTG Pactual agreed to acquire the local operations of Swiss private bank Julius Baer for BRL615 million ($101 million), bolstering its position in the wealth management business, the lenders said Tuesday.
Julius Baer, which oversees BRL61 billion in assets in Brazil, said the proposed divestment follows a review of its activities in Brazil over the past 12 months.
“The acquisition contributes to increase BTG’s presence in wealth management, family offices, high net worth individuals, and it will put them closer to Itaú and Safra, which have a relevant presence in this market,” Luis Santacreu, banking analyst at local rating agency Austin Ratings, told LatinFinance.
The deal will leave the São Paulo-based lender with more than BRL100 billion under management.
“It will rely on a higher volume of assets under management, with a customer base of high income individuals who will be offered other financial products from BTG,” Santacreu said.
BTG recently opened a new terminal at São Paulo’s international airport for use exclusively by high-income individuals. Itaú is preparing to do the same.
The bank acquired Brazil’s biggest wealthtech, Magnetis, in 2023 as part of a strategy to strengthen its digital banking platform.