BTG Pactual, Brazil's leading investment bank, has announced the signing of an agreement with a consortium of international investors including Abu Dhabi Investment Council to invest $1.8 billion for 18 percent of the firm.
The consortium is made up of Government of Singapore Investment Corporation (GIC), China Investment Corporation (CIC), Ontario Teachers' Pension Plan Board (OTPP) and Abu Dhabi Investment Council (ADIC) among others.
Abu Dhabi Investment Council is listed in the Middle East Investors Directory with the code EM01.
Their full press release follows
BTG Pactual, Brazil's leading investment bank, today announced the signing of an agreement with a consortium of prestigious international investors. The consortium, made up of affiliates of the Government of Singapore Investment Corporation (GIC), China Investment Corporation (CIC), Ontario Teachers' Pension Plan Board (OTPP), Abu Dhabi Investment Council(ADIC), J.C. Flowers & Co. LLC, RIT Capital Partners and Lord Rothschild's family interests, the Santo Domingo Group, EXOR, the investment company controlled by the Agnelli family, and Inversiones Bahia, the holding company of the Motta family, together with senior management of BTG Pactual, will acquire newly issued BTG Pactual shares representing an approximate 18.65% interest in BTG Pactual for US$1.8 billion. Upon completion of the transaction, BTG Pactual will have shareholders' equity of approximately US$4.3 billion.
The consortium believes this investment underlines BTG Pactual's pre-eminent position in the Brazilian financial market and the quality of its franchise, and that it also demonstrates the significance of Brazil and Latin America as an investment destination for some of the world's most important investors.
This investment evidences a significant step in BTG Pactual's strategic development, according to the company. The consortium brings an impressive group of investors to BTG Pactual, consolidating and expanding its global network and coverage, providing its clients with a unique access to opportunities and resources in an increasingly globalized market. The proceeds of this transaction will be used to develop BTG Pactual's core Investment Banking, Asset Management and Wealth Management activities, both in Brazil and internationally.
Andre Esteves, CEO and partner of BTG Pactual, commented: "The capital increase, from this highly respected group of investors, will allow us to consolidate our position as a leading emerging market-based investment bank and asset manager. The enhanced capital resources and unrivaled reach, knowledge and insight of our new strategic investors, combined with the existing capabilities and the unique culture of BTG Pactual, will strongly benefit our clients."
Huw Jenkins, a partner based in the London office, added: "The international scope of the consortium demonstrates BTG Pactual's privileged access to the world's premier investors. The benefits of this partnership will be appealing to all parties. The consortium will invest in a highly successful bank and asset manager in a region with some of the world's most exciting investment opportunities. Our clients, in turn, will benefit from the insights of some of the most respected and important strategic investors globally."
For the consortium, this transaction is seen to represent not only an attractive financial investment in Brazil's leading investment bank, premier asset manager and wealth manager, but also provides a long-term partnership with a uniquely well-positioned investment platform that will help them develop their access to investment opportunities and to enhance their deal-making and execution ability in the region.
The partners of BTG Pactual have not sold any shares in the transaction and have agreed to retain their interests for an extended period. Upon completion of the transaction, the investment consortium will be able to nominate three Directors to BTG Pactual's Board.
- Offices in Brazil (Sao Paulo, Rio de Janeiro, Recife, Belo Horizonte and Porto Alegre), the US (New York), the UK (London) and China (Hong Kong)
- Over 27 years of experience in Brazilian and international markets
- Approximately 1,100 employees
- Leading Investment Bank in Brazil in equity issuances and M&A transactions (IPOs and follow-ons - Dealogic/since 2004 and Thompson Reuters 2010)
- One of the leading emerging markets asset managers, with over R$ 90 billion under management and/or administration
- One of the largest wealth managers in Brazil, with R$ 30 billion under management
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