BTG Pactual Expands Family Office with Julius Baer Brazil Acquisition

The Swiss banking group Julius Baer has agreed to sell its wealth management and securities advisory business in Brazil to BTG Pactual. The deal, announced on Tuesday, involves assets worth R$ 61 billion ($9.84 billion) as of November.

BTG Pactual will pay R$ 615 million in cash for the acquisition. Julius Baer will continue to serve Brazilian clients from other locations, keeping its international business in Brazil unchanged.

The bank maintains a presence in Mexico, Chile, Uruguay, Colombia, and Spain within its Americas and Iberian Peninsula division. The transaction awaits regulatory approvals, with an expected closing in the first quarter of 2025.

Carlos Recoder, head of Julius Baer‘s Americas and Iberia division, explained the decision. He stated that preserving the multi-family office approach while enhancing investment capabilities and updating technology prompted the sale.

BTG Pactual views this acquisition as part of its family office segment expansion strategy. The segment, operating since 2010, will manage over R$ 100 billion ($16.13 billion) after the deal’s completion.

The transaction still requires approval from Brazil’s Central Bank and other regulatory bodies. Julius Baer’s Brazilian operations include offices in São Paulo, Belo Horizonte, and Rio de Janeiro.

The sale price falls below the R$ 1 billion ($0.16 billion) initially speculated during negotiations involving other institutions. This move reflects a strategic shift for Julius Baer in the Brazilian market.

It allows the bank to focus on its core strengths while ensuring continuity for its clients through a leading national financial institution. The deal showcases the dynamic nature of the wealth management industry in Brazil.

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