BTG Pactual is set to announce the acquisition of the Brazilian unit of Swiss bank Julius Baer, according to local newspaper O Globo.
The transaction is valued at approximately $162.6 million and the official announcement is expected this week, according to local media reports.
In addition to BTG Pactual, other financial institutions expressed interest in acquiring Julius Baer’s Brazilian operations. Among the competitors were Santander Brasil, Banco Safra, and XP Inc.
Julius Baer’s decision to sell its Brazilian unit is linked to the challenges the operation has faced in recent years. Assets under management in the country dropped from $13.014 billion to approximately $8.134 billion, indicating a significant contraction.
Additionally, the Brazilian operation reported losses, prompting the Swiss parent company to inject 300 million reais in 2024 to sustain local activities, according to the portal Brazil Journal.
To manage the sale process, Julius Baer hired investment bank Goldman Sachs as financial advisor. The Brazilian operation, focused on the wealth management segment, has offices in São Paulo, Rio de Janeiro, and Belo Horizonte. The transaction’s estimated value ranges between $130 million and $195 million, representing 1.6% to 2.4% of assets under management.
With this acquisition, BTG Pactual reinforces its position in the Brazilian wealth management market, expanding its client base and assets under management. The integration of Julius Baer Brazil’s operations could create synergies and strengthen BTG’s presence in the high-net-worth segment, consolidating its strategy for growth in the national financial sector.
