BTG Pactual Group operates as a partnership, whose Partners are also executives in the Group.
BTG Pactual Group believes the key to its success is its partnership model. This model (i) fosters a culture of teamwork, talent development, entrepreneurship, meritocracy and long-term commitment, (ii) substantially enhances the integration of its seven complementary business units and maximizes cross selling of its products, (iii) allows it to maintain an intense commitment to its clients, and identify and capitalize on opportunities in the Brazilian and international financial markets, (iv) substantially enhances its ability to attract the best available talent and (v) greatly facilitates its ability to consistently maintain a lean and cost efficient organizational structure.
As a result of this model, and the integration of its businesses, BTG Pactual Group has a diversified revenue mix and low cost-to-income ratio and have consistently achieved financial results that it believe exceed those of its competitors.
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 ensure that its partnership model will not change following this offering. Most importantly, its partnership has the right, at any time and for any reason, to require any Partner to sell all or a portion of his Partnership Equity at its then current book value rather than at the value at which such equity is then trading in the market or the fair market value of such equity. Such Partnership Equity may then be resold to other persons (either existing Partners or new executives) at book value. Such right will continue with respect to all of the Partnership Equity for the foreseeable future, and thus, it expect that such shares will never be eligible for sale into the market or to third parties.
BTG Pactual Group believes that the substantial ownership position of its Partners and the maintenance of its partnership in which Partnership Equity is bought and sold at book value on a meritocratic basis will (i) ensure the continued commitment of its most important executives to its success following this offering, (ii) permit it to maintain its unique culture and the competitive advantage it grants and (iii) permit it to attract and retain future generations of talent, all of which create an unprecedented alignment of the interests of its senior management with the interests of public shareholders.