Competition in Brazil’s private banking industry is heating up as digital investment platforms make it cost-effective for new entrants to break in. But BTG Pactual’s long-established wealth management franchise has built a position that seems unassailable.
Awarded Best Domestic Private Bank in Brazil, the firm’s focus on diversification and anticipation helped it not just protect client assets, but uncover new sources of return during a difficult year. The bank’s experienced teams scanned on and offshore market opportunities, balancing strategic allocation and well-defined tactical deviation. In equities, BTG concentrated on value and geography. In fixed-income, the bank shifted to inflation-linked and long-dated dollar bond investments. BTG’s alternative investments spanned the entire gamut of possibilities from real estate to venture capital.
Relentless in its search for the best possible strategy for each client, the bank tapped over 130 investment products throughout the year. Customers were also able to participate in BTG’s raising of almost $1 billion for V-Tal, the largest optical-fibre company in Brazil, in what turned out to be one of the biggest private-equity transactions in the country.
Clients benefit from BTG’s cutting-edge digital platforms that support their investment decisions. Prioritising the upgrade of customer relationship management and business intelligence services has allowed the bank to offer a broader range of client solutions. The firm’s dedication to attracting and developing top talent is obvious. BTG Pactual reported 66% growth in client-facing staff over the last year.
All this has helped attract a wave of new business that in turn has driven revenue growth. New clients increased 22% over the 12 months to September 2022, taking net new money to $23.8 billion. Assets under management rose 32% to $89.5 billion over the same period. Revenue in 2022 was up by an impressive 92% to $407.6 million.