BTG Pactual, the independent Brazilian investment bank, has secured a $1.8bn injection of fresh capital from a consortium of banks, led by three of the world’s biggest sovereign wealth funds.
The investment – by nine funds including the Government of Singapore Investment Corp, China Investment Corp and the Abu Dhabi Investment Council – underlines the shift in the funds’ focus away from western economies and towards emerging markets.
André Esteves, Pactual chief executive, said it was the “first big move” of the sovereign wealth funds not only in Brazil but Latin America. “It’s a sign of a new financial order,” he said. The deal values Pactual at $10bn, representing a fourfold increase in the value of the bank since it was bought out of the troubled Swiss bank UBS for $2.45bn 18 months ago.