Swiss lender Julius Baer and Milan-based wealth manager Kairos Investment Management (Kairos) have launched a combined unit in Italy that has begun operating under the name Kairos Julius Baer SIM SpA as of 1 June 2013.
Kairos had approximately EUR4.5 billion of assets under management (AuM). The completion of the transaction took place on 31 May 2013, and as part of the deal, Julius Baer acquired 19.9% of Kairos, after obtaining regulatory approvals.
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Expansion plans
Swiss bank Julius Baer signed a co-operation agreement with Kairos in November 2012 to create an onshore wealth management business in Italy.
The parties have also agreed to set up a new private bank in Italy by separately applying for a banking licence.
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By GlobalDataThe expansion in Italy is part of the 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.
Management responsibilities
Boris F.J. Collardi, CEO of Julius Baer, said: "Now we look forward to jointly developing a truly dedicated wealth management business which will significantly strengthen our long-term position in Italy."
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." Basilico also informed that he and his partners are running the business of Kairos Julius Baer SIM with the established Kairos team and the Julius Baer SIM staff, pursuing 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 business development region 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, the holding company.
Both parties are due to decide on a future increase of Julius Baer’s strategic participation after a few years.
