BTG IPO in 1-2 Years: Esteves

BTG Pactual, fresh from acquiring Brazil’s Panamericano, may look to go public in 1-2 years, the firm’s CEO Andre Esteves tells LatinFinance. “Not soon, because we have plenty of capital, but I would say that we are planning it. It’s something for the next maybe 1 or 2 years,” Esteves says in an exclusive interview. The firm had reportedly been planning to float last year, but it instead went to the private market. In December, it issued $1.8bn in new shares to a consortium including Asian and Middle East sovereign wealth funds. Esteves is bullish on the outlook for his independent investment bank and asset management firm. He anticipates a 50% rise in net income this year, from about $750m in 2010. This is driven by growth in the capital base. Esteves notes that BTG has almost $5bn of Tier 1 capital. In asset management, BTG manages about $50bn and Esteves predicts this will grow by 30% in 2011. BTG’s BRL1.2bn infrastructure fund is divesting assets and Esteves says he is considering opening a new one of similar size. Separately, BTG is heard raising a $1bn private equity fund for Brazil and fundraising is said to be close to wrapping up. Among BTG’s priorities are stabilizing Panamericano and developing the partnership with Caixa that arises from its purchase. “Our intention there is to develop an SME business that they already have but we think we can grow even further,” Esteves says of Panamericano. He adds that despite recent mismanagement, the bank’s reputation has not suffered. “They have a real franchise in terms of consumer finance,” says the banker. BTG also wants to expand IB operations throughout LatAm and grow its global EM-focused asset management business. Meanwhile, a New York-based investment banker away from the deal says BTG Pactual has agreed to acquire a stake in Casa&Video, a home furnishing and appliance retailer. BTG declines to comment on the deal, but Esteves says the bank is “always open to doing acquisitions in Brazil.”