The Swiss private banking group is to purchase a further 60.1 per cent in Italy's Kairos.
Julius Baer is to acquire a majority stake in Kairos, an Italian wealth and asset manager, before listing a minority of the company on the Italian Stock Exchange, subject to regulatory approval.
Julius Baer, which initially acquired 19.9 per cent of the Milan-based company in 2013, has increased its stake to 80 per cent for an undisclosed sum.
The transaction, which is expected to close in 2016, aims to boost Julius Baer’s and Kairos’ long-term position in Italy. Since the start of Kairos' partnership with Julius Baer in 2013, its assets under management have nearly doubled from €4.5 billion ($4.8 billion) to €8 billion.
“The partnership between Julius Baer and Kairos has proven to be a powerful force in the Italian wealth management sector, surpassing our expectations when we started this journey in 2013,” Boris Collardi, chief executive of Julius Baer, said in a statement today.
“We are confident that the future close cooperation combined with the intended listing will bring additional growth momentum and will further strengthen our position in the Italian wealth management market.”
Kairos, which was established in 1999 and employs over 150 staff, will continue to be run by founding partner, president and chief executive, Paolo Basilico, and his partners.
(To view Julius Baer's latest financial results, click here.)