Julius Baer took a stake in GROW Investment Group, entering the Chinese onshore market for the first time.
GROW Investment Group was founded in June 2021 in Shanghai and is a national asset management company based in China, which aims to be a China-focused next-generation asset management company.
Julius Baer will allocate a low double-digit equity investment of US$1 million to the company, and the partners will jointly establish a distribution network.
Domestic GROW customers will have access to select Julius Baer offerings through qualified domestic limited partnership products.
This is when Julius Baer’s global clients will have access to local investment expertise and assets through qualified overseas institutional investor products.
Commenting on the partnership, David Shick, Head of Greater China at Julius Baer, said: “We believe the opportunities in the sector in China are bright, and we look forward to gaining visibility and bringing our best solutions in their class. and expertise to Chinese customers.
William Ma, Global CIO of GROW, added, “I believe there are significant untapped opportunities for us in onshore China and I look forward to growing our business with Julius Baer.
The partnership comes at a time when Julius Baer is unwinding its stakes in some of its subsidiaries. This included the sale of 50% of the Mexican wealth manager NSC Asesores and the acquisition of the Geneva wealth manager Fransad Gestion by its management.
In the latest round of earnings, Julius Baer CEO Philipp Rickenbacher said the sales were mainly to independent asset management firms and were driven by the lack of anticipated consolidation in the Swiss market, in particular.