Selected as the Best Investment Bank in Brazil (2012) by World Finance, BTG Pactual operates under a partnership model with its clients and has been involved in many important capital market deals in recent years. Its investment banking unit is one of the leading platforms in the Brazilian market, present in large mergers and acquisitions (M&A) deals, IPOs and follow-ons, as well as debt transactions.

According to BM&FBovespa data, 141 IPOs were filed in Brazil between 2004 and 2012. BTG Pactual coordinated approximately 50 percent of this total. In another survey, conducted by the Brazilian Association of Financial and Capital Market Entities (ANBIMA), BTG was the number one underwriter in a significant number of deals. In the last three years, it has raised almost R$200bn (Brazilian real) for its clients operating in the equity market, as well as coordinating the main stock offerings in the country, involving companies such as Gerdau, BR Foods, OGX, Multiplus, Ecorodovias and Mills.

In the M&A segment, considering only 2011 data, BTG was the number-one adviser in deals according to three sector rankings: Thomson Reuters, Bloomberg and Dealogic.

According to Thomson Reuters, BTG has 30.4 percent market share in the Brazilian M&A segment, totalling R$41bn. In the last two years alone, it has been involved in the sale of Schincariol’s controlling stake to Kirin, the purchase of a stake in Usiminas by Ternium, the corporate restructuring of Grupo Oi, the acquisition of AES Atimus by TIM, the merger between TAM and LAN Chile and the joint venture between Cosan and Shell.

Client-focused strategy
BTG has been involved in the debenture issuances of many large Brazilian companies, including CEMIG, BR Malls, Concessionária de Rodovias do Oeste de São Paulo – ViaOeste, Telemar Norte Leste and BNDESPar.

The strengthening of the capital and M&A markets in Brazil in the last decade is clear for all to see. BTG’s role in developing these markets, doing business alongside its clients, has been prominent. It focuses on growing year-by-year with each one of its clients.

BTG is committed to following new trajectories as often as possible. This philosophy is in line with the company’s general business ethic: it believes in an investment bank that invests alongside its clients, not in isolation. This business model is sustained by a set of values and strategies that form the unique and characteristic culture of BTG Pactual, four of which are listed below.
1. Culture: BTG operates under a partnership model and a horizontal management structure that emphasises the value of intellectual capital, entrepreneurial spirit, meritocracy and the full alignment of interests with clients.
2. Management and team: BTG has a team of over 1,300 employees, including 58 partners and 107 associate partners. That team is formed by highly talented professionals with renowned ability and a solid reputation in Brazilian and international financial markets. The senior partners are directly involved in carrying out daily operations and have vast knowledge of the markets in which the company carries out its projects.
3. Global connections: In addition to offices in the US (New York), United Kingdom (London) and China (Hong Kong), BTG’s partners also include private and institutional investors, including the Government of Singapore Investment Corporation (GIC), China Investment Corporation (CIC), Abu Dhabi Investment Council (ADIC) and Ontario Teachers’ Pension Plan Board (OTPP). This network of contacts is rounded off by the Chilean brokerage Celfin and partnerships with CITIC (one of China’s leading investment banks).
4.Track record: Despite the turbulent financial cycles that have affected Brazil, BTG has managed to post consistent capital returns throughout its history. It has maintained a focus on maintaining strong capital coefficients and an adequate risk profile.

In addition to providing solutions tailored to the needs of its clients, and building long-term relationships with them, these factors have helped transform BTG Pactual into one of Latin America’s prime investment banks in recent years.

Reward for success
BTG’s numbers demonstrate this growth. In 2009, the start date of BTG Pactual’s operations as a bank, it had assets under management of around $42.3bn in its asset management division, $14.1bn in wealth management and a net equity of $3.0bn. In March 2012, BTG registered $73.6bn in total assets. In asset management, it now boasts $71.5bn in assets under management and/or administration, making it the largest manager of independent assets in Brazil (excluding retail banks), according to Anbima. It also has $23.1bn under management in its wealth management division, and net equity of $6.5bn considering the proceeds from the IPO.

In recent years, BTG has made major moves, such as the acquisition of Celfin, a leading brokerage firm in Chile, with operations in Peru and Colombia. With a business platform synergic with BTG’s own, Celfin is active in the areas of investment banking, financial products and services, asset management and wealth management. The transaction will still depend on the approval of the regulators, but upon conclusion it will consolidate BTG Pactual’s position as the largest bank in Latin America.

In December 2010, a consortium of institutional investors injected $1.8bn into BTG Pactual. In addition to the capital, which was used to develop the bank’s activities in its main business areas in Brazil and abroad, the consortium brought BTG a relevant group of strategic partners, consolidating and expanding its global network.

These long-term partnerships, together with the other operations previously mentioned, and BTG’s culture of adaptation, give its clients access to strategic business opportunities in the main global financial centres. BTG Pactual, in turn, offers the group of partners and investors access to its unique and well-positioned financial platform.

Overall, the bank has almost 30 years of experience in the local and international markets, since the foundation of Pactual in the 1980s. It is this history that enables it to take on the daily commitment of developing the businesses of its clients. This premise is part of BTG’s DNA and keeps it dedicated to growth in Latin America.