Posted inBusiness moves

Global wealth manager eyes acquisitions

The Swiss-based firm is looking to expand its presence in regions where it already operates.
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Julius Baer has set a number of targets for the next three years starting in 2023, according to our sister publication, International Adviser.

The wealth manager said that it will focus on “value creation for clients and sustainable profitability through high-quality revenues and improved efficiency”, as well as scale its business in key markets “through organic and inorganic growth” and innovate “wealth management through digital advancements”.

As part of its plans, Julius Baer will look to scale its business where the “opportunities to drive critical mass and exponential profit growth are highest”.

In Europe, the firm wants to expand its onshore footprint in Germany, the UK and Iberia, as well as Switzerland.  The wealth manager said that its Asia Pacific operation will continue to be served out of the Singapore and Hong Kong hubs.

In the growth markets of Brazil, the Middle East and India, the group will build on its presence to “seize further attractive business opportunities”.

Hires and acquisitions

Julius Baer said that growth in these markets will be pursued through three routes.

“First, by recruiting the best talent, returning to a net positive hiring number for client-facing staff including relationship managers and their assistants, investment advisers and wealth planners.

“Second, Julius Baer will push the development of its in-house talent front to back.

“And third, it will additionally seek to grow through a disciplined approach to M&A, building on its proven track record of forging value-creating transactions and their successful integration.”

This comes after the Swiss Financial Market Supervisory Authority (Finma) banned Julius Baer from making acquisitions in February 2020, after it found the firm had fell “significantly short” in combating money laundering in its Latin America operation between 2009 and 2018.

The ban was lifted in March 2021.

Phase of profitable growth

Philipp Rickenbacher, chief executive of Julius Baer, said: “We are initiating a new phase of profitable growth, building on the transformation we pursued successfully since 2020.

“Our unique client-centric business model and our dedicated focus on high and ultra-high net worth clients put us in a strong competitive position to shape our future.

“Capitalising on this strength, by the end of the decade, we will solidify our standing as the leading international wealth manager by growing the size of our business, its profitability, increasing its earnings quality and evolving the way we operate.

“In our next strategic cycle, we will focus on value creation for our clients, increasing recurring revenue generation and efficiency. We will also scale our business in selected key markets and innovate wealth management for the benefit of our clients.

“Underpinned by an engagement-led sustainability strategy and strong risk management, this will create value for all our stakeholders.”

Part of the Mark Allen Group.