Death of world’s richest banker highlights heirs

Joseph Safra became the richest banker in the world by turning a Brazilian bank into a multi-billion dollar global empire. Now, after a long illness and her death at age 82, the business is coming back to the next generation of the family.

What is at stake is a conglomerate made up of Banco Safra SA, Safra National Bank of New York and Switzerland J Safra Sarasin, companies with approximately $ 85,000 million in bank assets. There is also a $ 2.3 billion real estate portfolio, which includes Gherkin in London and 660 Madison Avenue in New York City, a stake in banana company Chiquita Brands International and a 130-room mansion in Sao Paulo.

Together, his four children and his widow will inherit an estimated fortune of around $ 17.6 billion, according to the Billionaires Index of Bloomberg. The succession comes as the global pandemic has rocked markets and accelerated the changes that are shaking traditional businesses such as banking and real estate. Brazil has been particularly affected, with the second highest number of deaths from covidus in the world. The Safras, known for their cautious approach to business, also face competition from foreign banks and startups for high net worth clients.

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“The importance of Safra in the financial system is less today than before. Other banks have overtaken it, ”says Rafael Schiozer, finance professor at Fundacao Getulio Vargas. “The family now faces challenges both in defining a strategy for their businesses and who will control them.

Safra “leaves a legacy that will be followed by many generations,” according to a Banco Safra statement on Thursday according to which he died of natural causes. The bank did not respond to a message requesting further comment.

The Safra dynasty has its origins in the Ottoman Empire, when it financed camel caravans, and endured global and family crises.

Joseph Safra was born in 1938, in Beirut, Lebanon, to a Jewish banking clan with roots in Aleppo, Syria. His father, Jacob, moved the family to Brazil after World War II, and Banco Safra was established in 1957. He and his brother Moise ran the Brazilian business, after his older brother, Edmond, parted ways with them. years earlier. to build their own banks in Europe and New York.

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Edmond, who then sold the business to HSBC Holdings Plc, died in 1999 as a victim of arson in Monaco.

In Brazil, Joseph and Moise made the bank one of the largest in Latin America, serving the country’s richest people and the biggest companies. The company was renowned for its strength, despite the many turbulences that its country of origin subjected it.

Jacob Safra said: “If you choose to sail the seas of the shore, build your shore as you would build your boat, with the strength to sail safely through any storm.”

He also made mistakes, notably in 2009, after the group was linked with a feeder fund for Bernie Madoff, who orchestrated a $ 17.5 billion pyramid.

Joseph and Moise went their separate ways in the 2000s, when a brawl between the two led Joseph to set up a rival bank in front of his family, J Safra, and he began stalking clients. To end the conflict, Moise sold his stake in the family business to Joseph in 2006 for around $ 2.5 billion and left the bank.

Joseph Safra, who suffered from Parkinson’s disease, organized his succession. Their children Jacob, David, Alberto and Esther received shares in the family’s main asset, Banco Safra, last December, according to a regulatory document. Two of his sons already occupy central roles within the group, Jacob being in charge of the international part of the operations, while David oversees the Brazilian firm.

Joseph’s second son, Alberto, retired from the family bank’s board of directors in 2019, “solely because of his personal intention to pursue another project with the family,” according to a note sent by Safra to the ‘time. Alberto maintained his stake in Grupo J. Safra and created ASA Investments. Joseph’s daughter Esther is an educator and has never been involved in the bank.

“Joseph, Moise and Edmond had their differences back then, they didn’t agree on how to run the business, and the next generation might have their disagreements too,” says Rodrigo Marcatti, a former employee of Safra who is now CEO of Veedha Investimentos. .

The youngest are already making their mark. The Brazilian unit, designed to serve the richest and largest companies in the country, entered retail banking this year. In October, it launched AgZero, a branchless digital bank, and strengthened a digital investment platform under the SafraInvest brand. Notoriously discreet, the bank has invested more in marketing.

There are also more subtle changes. Last year, David was among the country’s banking elite at a year-end luncheon hosted by the Brazilian Federation of Banks. At such events, Banco Safra was usually represented by a high-ranking officer, not a family member: Joseph was incredibly shy of the media, rarely giving interviews and avoiding public events. David’s presence was seen as a show of strength within the company.

“Safra has always been a traditional bank, but being traditional doesn’t mean it doesn’t evolve,” says Schiozer. “What sets him apart is that Safra is considered safe, no one is afraid to do business with him.”