GPS Investimentos Financeiros e Participações (GPS), the Brazilian unit of Swiss private banking group Julius Baer, has teamed up with local fintech firm Magnetis Gestora de Recursos.
Under the partnership, GPS will pick a minority holding in Magnetis.
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Financial terms of the transaction were not revealed.
Magnetis founder and CEO Luciano Tavares said: “Magnetis was founded based on the same core values as GPS: providing independent, client-focused investment advice, exempt of conflict of interest.”
Set up in 2012, Magnetis offers investment advice through a scalable platform along with automated portfolio management solutions.
The firm targets younger investors and oversees BRL250m ($63.7m) in assets.
Julius Baer head of Latin America and member of the executive board Beatriz Sanchez said: “We see a large underserved demand in Brazil for digital investment services that appeal to the rising market of younger wealth.
“With our investment in Magnetis, we will be able to capitalise on this growing segment and collaborate with one of the pioneers in this field.”
Julius Baer first acquired a 30% stake in GPS in 2011 and three years later raised the holding to 80%.
In June 2018, the Swiss private bank expanded its foothold in Brazil by acquiring a 95% stake in Brazilian wealth manager Reliance Group.
