Julius Baer Holding Ltd. has announced it plans to split its businesses into two fully independent publicly-traded entities. The Julius Baer Group name will be used by the company’s Private Banking entities, while its active Asset Management businesses will be rolled up into GAM Holding Ltd., which will include GAM, US-based Artio Global Management and Julius Baer Asset Management Europe.
According to the company’s press release, the separation “is expected to enhance both businesses’ ability to deliver their full strategic potential by allowing each entity to focus on the implementation of an increasingly distinct business and expansion strategy.” The transaction is subject to shareholder and regulatory approvals, and it is expected to close during the third quarter 2009. The company also remains committed to executing an IPO spin-off of Artio Global Management later this year, subject to market conditions.
GAM Holding Ltd. will be positioned as an active asset manager with a diversified range of equity and fixed income investment funds, discretionary portfolio management services and alternative investments. GAM was originally established in 1983 by Gilbert de Botton. GAM was a subsidiary of UBS AG from 1999 until December 2005, when it was acquired by Julius Baer Holding. Following the spin-off, “GAM will remain the preferred product provider for the private clients of Julius Baer Group Ltd. particularly for funds of hedge funds.”
GAM Holding Ltd will also include London-based Augustus Asset Managers, which was formerly known as Julius Baer Investments Limited. In 2007, Augustus was part of a management-led spin-off, which was reversed in April 2009 when Julius Baer announced that it had acquired the firm back from management. As of 3/31/09, Augustus managed $7.1 billion of assets across three areas: traditional long-only, absolute return and single strategy hedge funds. |
