Under the terms of the deal, which is subject to regulatory approval, Julius Baer’s Italian SIM will be integrated into Kairos while, simultaneously, Julius Baer will acquire almost 20% of Kairos.
The two companies, again subject to regulatory approval, have also agreed to set up a new private bank in Italy by separately applying for a banking licence after the closing of the other transaction.
All Italian wealth management activities of the two groups will be run under the name Kairos Julius Baer. In a statement the two companies said both parties will decide on a future increase of Julius Baer’s strategic participation after “a few years”.
Kairos is a leading independent wealth manager in Italy with approximately €4.5bn of assets under management. Similar to Julius Baer, Kairos, which was set up as a partnership in 1999, specialises in discretionary portfolio management focusing on high net worth individuals.
Paolo Basilico, president and chief executive of Kairos, and his partners will run the business of Kairos Julius Baer with the same team and pursuing the same client-centric strategy. Julius Baer will be represented on the board of directors with two designated members, Fabrizio Rindi, chairman of Julius Baer SIM, and Loris Vallone, head business development region Italy.
The Julius Baer SIM staff will be transferred to the new entity. Giovanni Flury, head region Italy and Ticino, and Marco Mazzucchelli, senior advisor, will represent Julius Baer on the board of Kairos Investment Management SpA, the holding company.
