Chilean financial services firm LarrainVial and Compass Consorcio Asset Management are to merge their asset management units; terms of the deal were not disclosed.

The newly-created joint venture – which will have a combined $2 billion in assets under management – will be 75 per cent owned by LarrainVia, while Compass Consorcio will hold 25 per cent. The latter's shareholders are investment manager Compass Group and Chilean financial services firm Consorcio Financiero.

The new entity will operate under the LarrainVial Administradora General de Fondos and Consorcio Administradora General de Fondos brands; the rest of LarrainVial and Compass Consorcio's subsidiaries will continue operating independently, the firms said in a statement.

An independent investment manager, Compass serves institutional and private clients through Latin America, and has affiliates in Chile, Colombia, Peru, Mexico, Argentina and New York. The firm has over $7.5 billion in assets under management and advice.

LarrainVial, which is one of Chile’s largest brokerages, also operates in Peru, Colombia and Mexico.