Julius Baer targets Italy with AM tie-up deal

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Swiss private banking group Julius Baer has formed a strategic partnership with Milan-based Kairos Investment Management in order to increase its position in the Italian market.

The agreement is intended to see Julius Baer and Kairos combine to develop an onshore wealth management group in Italy. The joint company will be called Kairos Julius Baer.

Under the agreement, Julius Baer’s Italian private client business will be integrated into Kairos, while, simultaneously, Julius Baer will acquire 19.9% of Kairos.

The deal is still subject to regulatory approval and expected to be completed by the end of the first half of 2013.

Also, as part of the deal, Julius Baer and Kairos intend to set up a new private bank in Italy by separately applying for a banking licence after the completion of the deal.

Paolo Basilico, president and CEO of Kairos, and his partners will run the business of Kairos Julius Baer. Meanwhile, Julius Baer will have two designated members of the firm’s board.

Commenting on the deal, Boris Collardi, CEO of Julius Baer, said: ‘We are extremely pleased to enter into a partnership with Kairos. Thanks to our strategic participation, we will increase our presence in the domestic Italian wealth management market.’

At present, Kairos Capital, which was established in 1999, oversees €4.5 billion of assets under management and has 115 total staff.