Switzerland's largest bank is gobbling up a key Brazil private banking player. The deal marks a debut for UBS' new Latin America boss.

UBS has bought a majority stake in Sao Paulo-based wealth manager Consenso, several media including «Bloomberg» reported overnight.

Consenso is Brazil's largest multi-family office, with 5.8 billion Swiss francs in assets under management and 60 employees. The firm was founded 14 years ago by former Banco BBA Creditanstalt bankers and maintains offices in Rio de Janeiro, Curitiba and Belo Horizonte. Founders Heinz Gruber, Luiz Borges, Maria Alice Gouvea, Daniel Auerbach and Valeria Milani Pierini plan to stay on board.

The Swiss banks plans to fold its existing Brazilian business into Consenso. UBS didn't disclose financial details for the merger, which is planned for the third quarter. 

Velez's Moment

«This transaction will enable UBS to accelerate its expansion in Brazil and shows our willingness to bolster our wealth management business in a core market,» Alejandro Velez, UBS' head of private banking in Latin America, said in a statement.

Velez, who joined the Swiss bank from Deutsche Bank two years ago, only just took over the region in March, in addition to his role as head of ultra-high net worth clients in the region. 

Brazilian Deja-Vu

For long-time observers of UBS, the deal provides a sense of deva-ju: the Swiss bank bought Banco Pactual in 2006 to break into the ultra-hot Brazilian market, then promptly sold it three years later when its financial crisis losses began piling up. 

Pactual, of course, went on to a corruption scandal of its own, when majority owner Andre Esteves was arrested last year as part of a wider corruption probe. He has since been released is remains an advisor to Pactual.

In 2010, UBS had recovered enough to get back into Brazil, snapping up Link Investimentos, one of the country's largest independent broker-dealers.

Rosy Prospects

Fast-forward to today: under country head Sylvia Coutinho, UBS has lifted its assets under management by one-third to 2.3 billion francs – so Consenso means a quantum leap forward to the bank. 

Private banks manage an estimated 260 billion francs in Brazil, a market which is still growing rapidly. UBS employs 250 staff in Brazil. Credit Suisse has had a steadier presence in Brazil, where it managed 28 billion francs at year-end.