Latin Finance - May 2008 - 69

brazil investment bank hiring Denise Moura has 40 professionals, says Bernardo Parnes, head of BBI in São Paulo. He believes that is paying off. “In 2006, we were placed 26 in equities, which is to say nowhere to be seen. Last year, we reached eighth place,” Parnes says. BBI plans to open an office this year in Dubai or Singapore to expand distribution. The bank already has a small broker dealer in London and seeks a similar presence in the Middle East or Asia. Bradesco aims to compete with the increasingly aggressive foreign firms moving into Brazil by providing a onestop shop for corporate wholesale clients. Its hefty real balance sheet is a significant asset since debt deals require firm guarantees, but most foreign houses boast more extensive international distribution. Bradesco is hiring a senior banker from a US shop – its first non-Brazilian hire – in a transfer that should be announced soon. Bradesco boasts 14 M&A mandates and a similar pipeline for equity. Balance sheet certainly helps. Parnes recounts receiving a call from a senior manager of Vale do Rosário, at a moment of crisis when Cosan was trying to buy more than 50% of the firm. “We received the call on a Sunday afternoon. I met with them that evening and by the end of Monday, they had a check for 1.4 billion reais. This could never happen with an international bank,” he says. Still, he is frank about the limitations of a national focus. “We don’t have the same placement power, product technology and cross-border M&A facilities. It is difficult for us to win big roles in international deals,” he admits, adding that M&A has proved a tough nut to crack. Unibanco has been slower off the mark. Recently, however, it hired Eleazar de Carvalho Filho, the former president of the BNDES, to head up the unit and Eduardo Gentil, a one time head of Goldman Sachs in Brazil, to head origination. The bank will kick off with 400 million reais in capital and 100 staff will be moved over, in areas including distribution, M&A, fixed-income and equity. The idea is to pay these senior staff with equity and options, dependent on the performance of the unit. Ones to Watch In addition to efforts to recruit by local banks, Goldman Sachs and Lehman Brothers are the others cited most often as being in growth mode in Brazil. Goldman has been building from its FX and interest rate platform, adding mortgages, commodities and credit sales and trading. “We are looking to be a full service investment bank, offering the same in São Paulo as we do in New York member of the exclusive operating committee, regional head of LatAm. This is the first time that a banker for LatAm has attained this level of seniority, points out Stewart. The firm has also just recruited Camille Faria, exCFO of energy company Terna. And there will be more, says Stewart. Finally, Lehman continues to enhance operations. It opened an office in São Paulo last year, starting with a fixed-income presence. The US bank hired Alex Maya, formerly of Morgan Stanley, and Rio Bravo’s founder – veteran banker Winston Fritsch – to head the new office. It is working to add cross border M&A activity, structured products and financing. The Great LatAm Hope There has been little sense of any slowdown in the frenzied pace of hiring in spite of much weaker market conditions. Ray Berndston’s Couto is continuing to see strong demand from clients, which he anticipates will only slow down come July-August. Demand for traders and salespeople, particularly in the middle market, is buoyant, he says. Clients are looking for talent with experience of highly structured products and derivatives. New players are also said to be interested in building a presence in Brazil. Royal Bank of Scotland is heard to be considering hiring in Brazil, following its acquisition of a LatAm investment banking team from ABN AMRO. For most financiers, Brazil represents the great new hope as domestic markets stumble. At a predicted 4.8% according to IMF figures, Brazil’s GDP will grow far above the world average this year, with the US estimated at just 0.5% and global growth at 3%, says Mercer’s Patto. And Brazil is the only BRIC country that has a solid democratic base and a financial industry that is transparent, he notes. That makes Brazil an appetizing target for foreigners desperate to expand and generate revenue. Local banks are just discovering how profitable investment banking can be in boom times too. This fight for talent is far from over. LF As big as other shops: Goldman’s Carlotti and London,” says Val Carlotti, president of Goldman Sachs Bank in Brazil. The firm is bolstering its presence in sales/trading, asset management and research and recently hired a head of equities trading. “We have recently carried out an analysis on our platform. Our size is very comparable if not bigger than some of our key competitors,” Carlotti adds. Morgan Stanley has also been beefing up. “We certainly are making a focused investment in Brazil and Latin America and I will be moving to São Paulo, underscoring our commitment to the region,” says head of LatAm investment banking Charlie Stewart, whose wife is Brazilian. Other changes include naming Chris Harland, one of the firm’s most senior bankers and a May 2008 LATINFINANCE 69

Latin Finance - May 2008

Table of Contents for the Digital Edition of Latin Finance - May 2008