Julius Baer aims to take closer control over Italian asset manager Kairos after plans to divest the unit seem to have foundered.

Zurich-based Julius Baer for some considerable time was looking to see whether there was an interest in its Italian asset manager Kairos. Now, the private bank has called a halt to proceedings and decided to tie the business closer to the headquarters as a deeper cooperation was more likely to enhance its long-term development.

Synergies and Growth Potential

Julius Baer and Kairos have entertained a partnership since 2013 and the bank step-by-step increased its stake until it finally completed the takeover in 2018.

A short time later, the business was up for sale again and Italy’s Mediobanca was mulling a purchase of the Milan-based company in spring 2019. Now, Julius Baer has opted to develop a plan that aims to better profit from the growth potential of Kairos and to exploit synergies with the private bank’s own services in Italy.

«Our review has clearly shown that Julius Baer is the best owner for Kairos, which offers significant potential for us to build out our position in the attractive Italian wealth management market,» said Yves Robert-Charrue, head region Europe at Bank Julius Baer and Chairman of Kairos.

Turnaround at Fund Performance

Kairos, which manages some 9 billion euros in assets, will contribute to the bank’s wealth management services and provide important elements to the investment offering, the bank said. Between the start of the strategic partnership in 2013 and June 2019, assets under management have more than doubled.

In 2018, Kairos had had some significant outflows of assets and its fonds fared badly. The performance has been much improved in the first half of this year.