Baer Reviews IPO or Buyout for US Funds Unit

Christopher Owen

29 November 2007

Swiss private bank Julius Baer Holding is understood to be looking at an initial public offering or a management-led buyout for New York-based Julius Baer Investment Management after talks to sell it stalled. According to Reuters, talks with Affiliated Managers Group and Legg Mason about a sale were derailed by pricing issues and it has now hired Goldman Sachs to lead an IPO. The bank is also considering a sale to the unit's management, similar to the sale in January of its UK-based fixed income subsidiary, another source said. JBIM managed $68.6 billion in assets, mostly in equities, as of end-June. Its key products are the Julius Baer International Equity Fund, which is closed to new investors and had $27 billion in net assets as of end-October, and the International Equity Fund II, with $9.7 billion in net assets.