Swiss bank Julius Baer has bought a 30% stake
in Brazilian independent wealth manager GPS for an undisclosed
São Paulo-based GPS, which includes GPS
Planejamento Financeiro and CFO Administração de Recursos (‘GPS’),
claims to be the largest independent wealth manager in Brazil with
about BRL8.5bn ($5 billion) in assets under management (AuM).
Domestic presence crucial in
Brazil’s domestic wealth management market is
attracting increasing attention from foreign banks – partly due to
the market’s heavy onshore focus.
Between 75-80% of Brazil’s wealth is held
locally and only 20-25% offshore, according to Itaú International
Private Bank chief executive João Medeiros.
Julius Baer and GPS still have a long way to go to match
Brazil’s market leaders including Itaú Private Bank and Credit
Suisse Hedging Griffo who control almost half of AuM in the private
Julius Baer follows UBS
Another Swiss bank, UBS, re-entered the
Brazilian market in April last year following its acquisition of
Brazilian brokerage firm Link Investimentos.
GPS, which employs a total staff of 84,
specialises in discretionary portfolio management and advisory
services for high net worth individuals.
GPS’s nine partners will continue to lead the
wealth manager. Julius Baer will be represented on the board of
directors of GPS by two members, the Swiss bank said.