For a few years now we have commented in our research on a metatrend “West-to-East”, developed market managers in the US or Europe leaving their domestic grass to look for greener postures in high-growth emerging markets, either organically or via stakes and acquisitions. My latest Latin America book gives a few case studies for Brazil, Julius Baer/GPS, Credit Suisse/Hedging Griffo, JP Morgan/Highbridge/Gavea, and more.

Conversely, we have also seen a trend “East-to-West”, or “Emerging-to-Developed” – emerging market managers entering Europe and the US to bring their expertise to these markets – it was a major theme in the CEO Asia Thought Leader Series we hosted last week in Hong Kong. Mirae launching funds in the US, Temasek/Fullerton, Victoire, BTG Pactual and others registering UCITS, or Bank of China lifting out an UHNW team from LODH to offer RMB products via Geneva.

Of late, we have talked about greater emerging market bridges, emerging markets and firms avoiding the trouble spots in Europe and the US to directly go into other high-growth markets. Examples include Chilean pension funds’ insatiable appetite for Asia strategies, CCB targeting Brazil and Citigroup focusing on bringing its EM HNW clients closer together.

Well, let’s add to this a new phase.

Emerging market managers buying stakes or acquiring developed market players. As the private banking industry in Switzerland has hit some bumps in the road and is likely to see consolidation, industry observers assumed that Julius Baer would be the buyer for Sarasin, having made no secret of ambitions to grow through acquisitions. Baer previously bought ING’s Swiss operations but was not able to add those of ABN Amro. In the case of Sarasin, management resisted the Baer takeover for a variety of personal and business reasons.

Enter Brazil’s Safra Group.

Safra surprised the local industry in Switzerland (and Julius Baer) by agreeing to buy a majority stake for Sarasin from Rabobank for $1.1 billion to expand and link private banking in Europe, the Middle East and Asia. Sao Paulo-based Safra, having moved its headquarters there from Syria in 1952, will bring some Samba to the Bahnhofstrasse. Joseph Safra, somewhat gleefully, stated “the origins of Safra and Sarasin are very similar”, with “philosophies and strategies to private banking that are very much the same.” Ouch.

Get ready for many more emerging market players to emerge as competitors and acquirers on the world stage of asset management, led by countries like China, Brazil, and the N-11. At a recent industry conference in Sao Paulo I interviewed the leaders of some of the top Brazil asset managers on their strategies.

For a case study of the Safra Group, please review: State of the Asset Management Industry – Latin America.