The Pactual partners: should I stay or should I go?
The ink has just dried on the contract. Finally Andre Esteves, a former Pactual partner, has his old firm back in his grasp after UBS agreed to sell in April and the deal closed in September. The new BTG Pactual took back 65 of its original partners. However, half of these plan to move on.
Gilberto Sayão, a former senior partner with Andre Esteves, who is still expecting another $200 million from the initial Pactual sale in 2006 to UBS, is leaving with another 29 old partners. The other half are slipping in nicely with Esteves’ plan of local investment banking domination.
The 35 partners that are staying have taken on their stock share and have already seen the value of the bank rocket up. One source at BTG Pactual notes: "BTG announced its acquisition of Pactual in April for $2.4 billion. I don’t think $5 billion would be enough for the bank now. The market has recovered so much more quickly than we expected. In April, we certainly didn’t imagine we would be running a $7.8 billion IPO for Santander, not to mention all the other equity deals we are working on at the moment."
The source also said that a BTG Pactual IPO is already under consideration. Although nothing is finalized, the group is apparently looking at coming to market in the middle of 2010. Analysts estimate BTG Pactual to be valued at $8 billion to $10 billion today.