The Swiss private bank Julius Baer and Milan-based Kairos Investment Management have officially announced their long term strategic partnership, licensed by the Bank of Italy and effective from June 2013.
Under the name Kairos Julius Baer SIM, the new private bank represents an ambitious project in the Italian wealth management business, whose outlook has not been full of enthusiasm recently.
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The completion of the transaction took place on 31 May 2013 after the previously announced co-operation of the two groups in November 2012 to create a strong onshore wealth management business unit in Italy. In line with the agreement, Kairos has formally acquired 100% of Julius Baer and its activities, with Julius Baer acquiring a stake of 19.9% in Kairos.
Boris F.J. Collardi, CEO of Julius Baer, commented: "Now we look forward to jointly developing a truly dedicated wealth management business which will significantly strengthen our long-term position in Italy."
The expansion in Italy is part of Julius Baer’s strategy to further grow and develop their business in Italy, the bank said, following joint ventures with Bank of China in July and Australian Macquarie group in October 2011 and Baer’s acquisition of Merrill Lynch’s international wealth management business.
Paolo Basilico, founding partner of Kairos, added: "I am excited to shape the future of Kairos Julius Baer SIM, with the clear goal to become a major force in the Italian wealth management market. The vast combined expertise and experience of both partners will result in a powerful offering and outstanding service for our clients."
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By GlobalData
Management structure remains unchanged
Kairos Julius Baer SIM group will see the established Kairos team and the Julius Baer SIM staff working together with the same client-centric strategy as in the past. Julius Baer is represented on the board of directors of Kairos Julius Baer SIM with two members, Fabrizio Rindi, chairman of the new entity, and Loris Vallone, head ofbusiness development Switzerland. Giovanni M.S. Flury, head region Switzerland, and Marco Mazzucchelli, head of private client services, are representing Julius Baer on the board of Kairos Investment Management SpA, the holding company.
Both parties together will decide on a future increase of Julius Baer’s strategic participation after a few years. The terms of the transaction have not been disclosed.
