A spat in the next generation of Safras has spilled out into the open. What does it mean for succession in the $18 billion Swiss-Brazilian banking dynasty, and for its Swiss wealth manager Safra Sarasin?
The rivalry between two sons of family patriarch Joseph Safra – Alberto and David – grew so intense that the brothers nearly came to blows, according to Swiss magazine «Bilanz» (in German), which cites a report by Brazilian outlet «Veja» (not available online). The report of a feud comes as the elder Safra, who is 81, reportedly increasingly retreats from the family business.
The tension comes against the backdrop of huge changes this year of Swiss wealth manager J. Safra Sarasin, which was formed when Brazil's Safra Group bought Basel-based private bank Sarasin in 2011. It abrupty replaced its CEO six weeks ago, shortly after nabbing a former top private banker from UBS as chairman. The bank has also turned up in «Lava Jato,» a major Brazilian money laundering and graft probe.
Brotherly Brinkmanship
Forty-year-old Alberto and 35-year-old David, the younger sons of family head Joseph, disagreed on strategy and positioning for the wider banking group, according to the report. A source familiar with the dispute told finews.com the two were locked in a months-long brinkmanship.
In October, Alberto left the board of the Safra family's Brazilian bank. Local newspapers reported at the time that Alberto and David, who ran the lender's wholesale and retail businesses, respectively, disagreed over a digital wallet project. The person familiar with the dispute told finews.com it had never spilled over to Safra Sarasin directly and specifically.
Eldest Son Poised
The tensions eventually died down – not least because of Jacob Safra, the eldest son. Long considered to be subservient to his powerful father, Jacob has emerged as the most likely representative of the Safra family to inherit the patriarch's role, according to the person. Jacob, who joined the family business in 1998, runs the Safra family office, and also sits on the board of Safra Sarasin.
The family rumblings are noteworthy: the Safras are notoriously secret, but incredibly wealthy. Joseph Safra is worth north of $18 billion, according to Bloomberg's billionaire index. Much of the Safras' money comes from banking, but the family also owns 50 percent of banana distributor Chiquita and real estate like London's Norman Foster-designed «Gherkin» skyscraper.
