Pinheiro Neto and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga advised on the deal
Julius Baer – through its Brazilian subsidiary JB Participações Ltda. – has agreed to acquire 95% of the São Paulo-based Reliance Group (Reliance) for an undisclosed amount subject to certain performance conditions. Reliance is one of the largest independent wealth managers in Brazil with client assets of approximately BRL 17 billion (CHF 5 billion). The closing of the transaction is expected in the second quarter of 2018 and is subject to customary closing conditions and regulatory approvals.
Reliance, which employs a total staff of 70, was established in 1998 and has successfully grown its client base and operations over the years. The company specialises in wealth management services for high and ultra-high net worth individuals and is thus an excellent strategic and cultural fit to Julius Baer. Reliance is profitable, and the transaction is expected to be accretive to Julius Baer’s earnings by a low single-digit percentage. Julius Baer Group’s BIS capital ratios will be impacted by less than 50 basis points.
This acquisition significantly strengthens Julius Baer’s strategic position in Brazil where the Group is already present with the wholly owned GPS Investimentos (GPS), the country’s largest independent wealth manager with client assets of BRL 27 billion (CHF 8 billion) and over 120 employees. With this acquisition, Julius Baer increases its client assets managed out of Brazil to approximately BRL 44 billion (CHF 13 billion).
The 13 partners of Reliance will continue to lead the business with the same team and with its well-established name under the coordination of Julius Baer. Once the transaction is closed, it is envisaged that Julius Baer, together with Reliance and GPS, will determine the best way forward to define potential synergies in a strong mutual cooperation.
Pinheiro Neto advised Julius Baer and JB Participações Ltda. with Alexandre Bertoldi (Picture), Sofía Ramos de Toledo Piza, Guilherme Antonio Bassan Amorim and Gabriella Lima Florner.
Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga advised Reliance Capital with Hiram Bandeira Pagano Filho, Moacir Zilbovicius, Andrea Bazzo Lauletta, Fernanda de Proft Cardoso, Fabiana Rocha Pasmanik, Teresa Broggi Ciardullo and Maria Fernanda Fidalgo Fernandes da Cunha.
Involved fees earner: Hiram Bandeira Pagano Filho – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Moacir Zilbovicius – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Fernanda de Proft Cardoso – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Fabiana Rocha Pasmanik – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Teresa Broggi Ciardullo – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Andréa Bazzo Lauletta – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Maria Fernanda Fidalgo Fernandes da Cunha – Mattos Filho Veiga Filho Marrey Jr & Quiroga; Alexandre Bertoldi – Pinheiro Neto; Sofia Ramos de Toledo Piza – Pinheiro Neto; Guilherme Antonio Bassan Amorim – Pinheiro Neto; Gabriella Lima Florner – Pinheiro Neto;