BTG Pactual Group’s competitive strengths include:
- Substantial presence in Brazil, where BTG Pactual Group is a dominant Investment Bank, Asset Manager and Wealth Manager, with a leading franchise in the businesses it operates. BTG Pactual Group is one of the leading players in Brazil’s financial services industry, which it believes to be one of the most attractive financial services markets globally. Given its substantial presence in Brazil, BTG Pactual Group believes that it is positioned to participate in the vast majority of significant merger and acquisition, financial advisory and capital markets transactions involving Brazilian companies. It operates in Brazil through BTG Pactual Group, one of the premier brands for investment banking and asset management in Brazil and one of the largest independent investment banks based in the emerging markets.
- Established international Asset Management platform. BTG Pactual Group has an international asset management platform in London, New York and Hong Kong that, together with its São Paulo and Rio de Janeiro offices, provides Brazilian, emerging market and global investment products and services to its local and international client base.
- Broad network of international contacts. The members of the Consortium who have invested in BTG Pactual Group’s equity in December 2010 include affiliates of the Government of Singapore Investment Corporation Pte Ltd (GIC), China Investment Corporation (CIC), Ontario Teachers’ Pension Plan Board (OTPP), and Abu Dhabi Investment Council (ADIC). These investors provide it with a broad range of business contacts throughout Asia, the Middle East, Europe and North and South America, and since their entrance into its capital structure, it has successfully leveraged these contacts to strengthen many of its principal businesses and realize additional revenues.
- Distinctive culture stressing intellectual capital, meritocracy, entrepreneurship and an unprecedented alignment of interests. BTG Pactual Group operates under a partnership model and a flat management structure that emphasizes the value of intellectual capital, entrepreneurship and meritocracy. BTG Pactual Group believes this model is the key to its success.
- Track record of strong growth with consistent profitability through various economic cycles while maintaining strong capital ratios and rigorous risk controls. While BTG Pactual Group has generated strong and consistent earnings, it also focus on consistently maintaining strong capital ratios and an adequate risk profile. BTG Pactual Group believes that its track record of consistently maintaining a higher capital ratio than that required by the Central Bank while consistently generating attractive returns on equity highlights its ability to deploy capital efficiently.
- Experienced management team and motivated work force. BTG Pactual Group has a group of highly talented professionals with a strong reputation in the Brazilian and international financial markets. This group was responsible for establishing and implementing the strategies that permitted BTG Pactual Group to become one of Brazil’s leading financial institutions.
- Diversified portfolio of businesses. BTG Pactual Group believes it has successfully diversified its business operations and sources of revenues to maximize opportunities for leveraging its client relationships across business units, as well as to best position itself to exploit any changes in market conditions.
- Strong and diversified funding base with proven asset-liability management. BTG Pactual Group has a solid and diversified base for funding its operations through its private banking network, institutional client base, corporate client base, and in the capital markets which allows it consistently able to fund its operations and to manage its liquidity risk maintaining a strong cash position, which is always sufficient to run its operations for 90 days assuming that it does not obtain new funding.
BTG Pactual Group seeks to implement the following strategies:
- Capitalize on Brazil’s outstanding growth perspectives. BTG Pactual Group believes that Brazil has all of the conditions necessary to achieve outstanding growth in the financial services sector. These conditions include (i) a favorable macroeconomic environment and political stability; (ii) sound institutional and regulatory framework; (iii) improved corporate governance; (iv) a sophisticated and deep domestic financial market; (v) a highly attractive investment environment; (vi) a growing middle market and middle income consumer base; and (vii) numerous companies well-positioned to continue to grow and tap international markets.
- Maintain its distinctive culture and create an unprecedented alignment of interests between partners and shareholders. In contrast to other investment banking and asset management firms in Brazil and worldwide that have sold equity to the general market in the past, BTG Pactual Group has implemented several concrete steps to maintain its partnership model.
- Take advantage of attractive growth opportunities through strategic acquisitions. BTG Pactual Group intends to expand through selective acquisitions. It expects to focus on acquisitions that are complementary to its existing businesses, and that offer opportunities for growth and earnings accretion.
- Expand its international operations. BTG Pactual Group’s presence in important financial markets such as São Paulo, New York, London and Hong Kong enables it to better explore business opportunities arising in different regions and demonstrates its intent to continuously seek diversification. BTG Pactual Group believes there are attractive opportunities for selective continued expansion outside Brazil and intend to pursue these opportunities. It believes, for example, that its strong reputation and global presence will allows it to (i) expand its marketing of Brazilian and emerging markets asset management products to a global customer base, (ii) expand its investment banking business to other Latin American countries, (iii) attract additional talent and teams with experience in markets and products outside of Brazil where it currently does not have significant expertise, and (iv) expand the business that it conducts internationally with Latin American companies that are expanding globally.
- Selectively expand its portfolio of credit products and derivatives. BTG Pactual Group plans to expand its offering of credit products and derivatives to its current and prospective clients, including through its commercial banking platform (PanAmericano). BTG Pactual Group expects to primarily exploit credit opportunities that are linked to its other core business units - in particular investment banking - and also those that involve structured products and derivatives. BTG Pactual Group intends to continue to analyze credit opportunities closely, performing rigorous analyses of prospective borrowers’ businesses and existing and prospective financial condition and results, in order to select opportunities which will satisfy its stringent standards for achieving high returns within acceptable risk parameters. BTG Pactual Group considers Banco PanAmericano’s origination platform another step in implementing these strategies, as such platform originates consumer finance and middle market assets on a primary basis that are complementary to the credit that it originate through Banco BTG Pactual’s platform.
- Continue to develop its Merchant Banking and Private Equity businesses. BTG Pactual Group believes that its ability to provide permanent capital to its clients is an important competitive advantage. Accordingly, BTG Pactual Group intends to continue to develop its merchant banking and private equity businesses, primarily with respect to investments in Brazil.