BTG Pactual’s alternatives team has been investing in alternative investments on a global basis for the past 30 years. It remains steadfastly focused on building strong and long-term relationships with top-tier fund and investment managers across the alternative asset landscape, including the likes of hedge funds, private credit, private equity, real estate and venture capital.
“Our mission is straightforward,” the Rio de Janeiro-headquartered lender states in its pitch for this award. “To connect our clients with the best alternative investment solutions available, backed by a dedicated team committed to providing unmatched service at every step of the process.”
The firm achieves this with room to spare. Its business operates via two main divisions – alternatives managed accounts and distribution of alternative investments – overseen by a team of five specialists based in São Paulo and Miami, delivering customised solutions and access to world-class alternative investments. As of the end of October 2024, the team managed more than $2.4 billion in assets for clients across Latin America, the US and Europe, bolstered by booking centres in the Cayman Islands, the US and Luxembourg.
First, the bank carries out in-depth assessments of each client’s individual needs, from risk tolerance to liquidity preferences and expectations of returns. This rigorous due diligence process consists of five stages lasting up to two months and includes reference checks as the bank evaluates performance/risk considerations alongside a deep peer group analysis. In this way, BTG Pactual determines the optimal allocation strategy across the alternatives spectrum, to meet each client’s unique profile. To aid this process, it provides performance simulations using benchmarks from data provider Preqin.
To further refine its portfolio construction process, the lender employs cashflow modelling based on Yale University’s TA Model. This helps to forecast capital calls and distribution schedules for clients’ portfolios, and in turn to achieve the desired alternatives allocation, despite distribution effects. Each portfolio takes multiple factors into account, including strategy, stage, vintage year, sector, manager and geography, to ensure alignment with the individual’s investment objectives.
BTG Pactual determines the optimal allocation strategy across the alternatives spectrum, to meet each client’s unique profile
On the distribution side, the BTG alternatives team evaluates client demand and industry-wide trends to identify the best asset class opportunities and to secure access to elite managers and alternative products. By granting direct access to investment options and proprietary feeder funds, the firm enables investors to access world-class managers. This model – which includes lower minimum investments, access to institutional share classes at reduced costs, and in certain cases improved liquidity options such as no hard lock-up – has delivered significant value to clients.
Over the years, BTG Pactual has cultivated strong relationships with a host of prominent global managers, including Millennium, Diameter, Sequoia Capital, Point72, Brevan Howard and A16Z. In the process, it delivers to clients top-tier investment products and unparalleled support. Its managed-account clients benefit from monthly presentations, featuring in-depth portfolio analysis covering topics such as capital-call pacing, fund life-cycle updates, distributions, and return metrics.
Newly launched client portals in the US and the Cayman Islands enhance the client’s experience with alternatives by providing a complete overview of commitments, capital calls, current positions, performance histories and cashflow histories. BTG Pactual also facilitates manager access for clients by providing a series of online and in-person meetings throughout the year. In 2024, it hosted 15 client events with prominent global alternative investment firms, including the likes of Blackstone, Blue Owl Capital, Two Sigma and Coatue.
Guilherme Salgueiro, partner at BTG Pactual, says: “We are proud to offer our clients leading alternative investment solutions, backed by a dedicated team committed to providing unmatched service at every step of the process. Through rigorous portfolio modelling, BTG Pactual delivers tailored investment solutions and hard-to-access alternative investments that meets different risk preferences.”
