BTG Pactual raises $1.96bn in IPO

The Brazilian investment bank’s IPO was backed by JC Flowers & Company, the Ontario Teachers’ Pension Plan Board and several major sovereign wealth funds.

Brazilian investment bank BTG Pactual has raised R$3.65 billion ($1.96 billion, €1.48 billion) in an initial public offering. 

The bank sold 117 million units at R$31.25 per share, according to reports. The website of Brazilian regulator Comissão de Valores Mobiliários, with which BTG filed its securities, was experiencing technical difficulties at press time. 

BTG is backed by a number of private equity heavyweights, including JC Flowers & Company, which led a consortium of investors that included the Government of Singapore Investment Corporation (GIC), the China Investment Corporation (CIC), Ontario Teachers’ Pension Plan Board and the Abu Dhabi Investment Council in acquiring $1.8 billion in BTG’s shares in 2010. 

It is unclear to what extent members of the consortium reduced their stake in the bank. 

Last year, BTG held an extremely successful private equity fundraise, generating $1.5 billion in commitments in only six months, beating its target by 30 percent. Other Brazilian firms to break the $1 billion fundraising mark last year included Vinci Partners, Gavea Investimentos and Patria Investimentos. 

Earlier this year, BTG agreed to acquire South American investment bank Celfin Capital, which will expand the bank’s reach into Chile, Peru and Colombia. BTG will manage $69 billion through its asset management arm upon completion of the merger, which is subject to regulatory approval. 

Celfin has strong footing in private equity in its own right. The bank has significant experience sourcing capital from Latin American pension systems for international firms, including Kohlberg Kravis Roberts and Southern Cross.