We operate under a partnership model and a flat management structure that emphasizes the value of intellectual capital, entrepreneurship and meritocracy. Our culture is key to our success.
The partnership culture creates an unprecedented alignment of interest between shareholders and professionals. All of our main executives are partners and their respective equity ownership in BTG Pactual represents significant portions of their personal wealth (and in most cases, the vast majority of such wealth). For our 25 most senior partners, including our senior investment managers, the earnings and capital appreciation on their BTG Pactual equity exceeds the amount they earn in salary and bonuses.
We believe the sense of ownership created by the partnership encourages (i) a rigorous analysis of the risks that we take in our trading and investment activities, (ii) the pursuit of strategies that emphasize long-term, consistent and profitable growth, (iii) a long-term commitment to our clients and our reputation, and (iv) the preservation of a lean organization structure.
- Voted Most Innovative Investment Bank in Latin America by The Banker (2013), and Best Investment Bank in Brazil and Chile by World Finance (2013).
- Leader in equity issuances in Latin America since 2004 (Dealogic) and in Brazil (Bloomberg, 2012); Best M&A House (Brazil) and Best Equity House (Brazil, Chile and Latin America) according to Euromoney (2013).
- Ranks #1 in volume and number of fixed income deals involving Brazilian companies in the international market (Dealogic, 2013) and in M&A deals in Brazil (Thomson Reuters, 2013).
- Voted Best Research Team in Latin America (2012) and Brazil (2013 and 2012) and Best Sales&Trading Services Team in Latin America (2013) and Brazil (2013 and 2012) by Institutional Investor.
- With R$194.6 billion in assets under management and/or administration, the Asset Management area was voted Best Fund Manager in Brazil by the Exame magazine (in conjunction with Fundação Getúlio Vargas) for two consecutive years (2012 and 2011).
- With R$76.5 billion in assets under management, the bank’s Wealth Management division was voted Best Private Bank Service in Brazil by Euromoney and The Banker (2013).
We are one of the largest asset managers in Brazil, with R$ 135.6 billion in AUM and AUA in September 2016.
We have an international Asset Management platform, with teams in London, New York and Hong Kong, which, together with our São Paulo and Rio de Janeiro offices, provides Brazilian and emerging and global market investment products to our local and international client base. We have a team of over 90 employees, including 16 of our most experienced executives, fully dedicated to our Asset Management activities at our international offices. Our platform has grown strongly, from US$0.7bn in AUM on 31 December 2009 to US$4.2bn on 31 December 2011. Our flagship international hedge fund, GEMM, received the award for Best Global Macro Hedge Fund in 2010, 2012 and 2013 from Eurohedge. It was also ranked as one of the 20 most profitable hedge funds in the world.
In 2011, the members of the Consortium who invested in our capital include heavyweight private and institutional investors, including the Government of Singapore Investment Corporation (GIC), China Investment Corporation (CIC), Ontario Teachers' Pension Plan Board (OTPP) and Abu Dhabi Investment Council (ADIC). These investors provide us with a broad range of business contacts in Asia, the Middle East, Europe and South and North America.
BTG Pactual’s local offices in Chile, Colombia, Peru and Mexico give it relevant additional contacts throughout the Andean region, enabling it to leverage on its contacts in order to originate important local relationships.
We participated, as an anchor investor, in the September 2011 IPO of CITIC, a leading Chinese investment bank. We are currently working with this bank to jointly develop a number of business initiatives, such as providing co-advisory services to clients looking to enter into transactions involving Chinese and Latin American companies. We also have an agreement with Sumitomo Mitsui Banking Corporation (SMBC) to develop cross-border investments between Japan and Brazil.
In June 2012, we established a strategic cooperation agreement with Russian investment bank VTB Capital to explore increasingly strong trade relations between Russia and Latin America.
We have a group of highly talented professionals with strong reputations in Brazilian, Latin American and international financial markets, a group that created and implemented strategies that have made us one of Latin America's leading financial institutions. Our team includes André Esteves, the only Brazilian featured in the 2012 Bloomberg “50 Most Influential People” ranking, and Persio Arida, Brazil’s Central Bank Governor in 1995, BNDES chairman from 1993 to 1994 and one of the key economists who helped create and implement the so-called Real Plan.
Outside Brazil, our team features partners with vast experience at international institutions, as either G-10 and ex-Brazil emerging market security traders or the main executives in global Investment Banking and Asset Management divisions.
We have generated strong and consistent returns on our capital throughout all cycles of the Brazilian economy, having made a profit in each of the last 15 years. In the 5-year period ending December 31, 2011, our average return on equity (ROE) was 41.5%, whilst never dropping below the 21.5% threshold.
These results were obtained with strong capital ratios and an adequate risk profile. From 2007 to 2011, our year-end BIS ratio has exceeded, by an average 10.1%, the Brazilian Central Bank’s minimum threshold. As of December 31, 2011, Banco BTG Pactual had a Tier 1 capital ratio of 11.0%, and a total capital ratio (including Tier 2 capital) of 17.7%.
We follow a rigorous discipline of risk management and internal controls. We monitor our risks on a daily basis, complying with market risk, credit risk, liquidity risk, counterparty risk and operational risk.
Our senior partners are hands-on involved in the bank’s daily operations, and are vastly knowledgeable on the markets where we do business. We also have an independent risk management team, led by one of our main partners.