Latin Finance - November/December 2010 - 24

boutique banks

Defending a Turf
by Ben Miller he credit crisis left opportunity for boutique investment banks in markets outside Brazil, though not on the same scale. In Mexico and Colombia, where an array of specialists sprang up, new entrants appear to have slowed. Pan-regional players are sticking to their specialties. Though global investment banks have revived, LatAm business across the board has surged. Niche service providers hope this means more opportunity overall, even if it at the moment it is more difficult for new entrants. “A year ago it looked like everyone was trying to be a boutique” says Randall Pike, partner at BCP. “But since the new issue business picked up, and prices have improved, big banks have built up and most boutiques have found it hard to compete.” For local specialists in the region, restructurings, bankruptcies and other services to be offered during bad times are largely a thing of the past. While capital markets and M&A activity have picked up and are expected to continue to do so, it is unclear how this may affect smaller, independent specialists. M&A volume for transactions of $500 million or less in Latin America and the Caribbean reached $32.41 billion this year as of October 1, up sharply from $24.16 billion in the same period during 2009, according to Dealogic data. While this has meant an increase in countries such as Brazil and Chile in that period, Mexico’s total for that size transaction has gone down this year, to $1.72 billion to $2.43 billion – though the number of such deals is slightly up, at 58 this year from 55 last year, according to Dealogic data. “We have a strong pipeline, but the economy now is not as strong,” says Fernando Aportela, senior MD at Mexico’s

T

The growth of boutiques in Mexico and Colombia has slowed. Pan-regional players are sticking to their niches, but recovering global investment banks are moving back in.
Protego. “We are not in a moment where you see a need for restructuring, but you are not in a booming market either, so you don’t see M&A.” Aportela notes that his firm has been relying more on its business consulting practice while awaiting a pickup in M&A and elsewhere. He does not see many new participants coming into the Mexican market. Those at other existing shops also claim to see a drop in new arrivals to challenge Protego or other established specialists such as Serficor and Fausto García Asociados. The firm also has its private equity business to rely on. Protego is preparing its own 2.0-2.5 billion peso Certificado de Capital de Desarrollo (CCD) transaction. The PE fund will specifically focus on infrastructure investment in state and local-level public-private partnerships (PPP), an area where it has experience advising such governments. Aportela sees growing opportunity for advisory work in this space as more governments in Mexico work to facilitate PPP projects. landscape is not too different from what it was four or five years ago. “The situation with international banks in Mexico is not like the one in Brazil, where it created several new boutiques,” says Vara. Brazil’s stronger performance during and after the crisis has meant a bigger boom in M&A activity. This year Vace worked on a $120 million sale of condom manufacturer Sico on a sale to a US publicly-traded buyer, and a structured debt transaction for payroll discount lender Credito Maestro, borrowing from a group of US hedge funds, for about $100 million, following an earlier $70 million raise with a local hedge funds. Vara emphasizes that his firm aims to compete with the large banks just as much as other boutiques. Vace is attempting to leverage old relationships with larger and medium-sized companies to continue advising this segment of the market, even up to $500 million deals. Mexican teams at the large international banks are a step behind other countries in rebuilding, Vara says. This leaves plenty of space for specialists he explains, as mid-market companies in Mexico are becoming more open to joint ventures, alliances and acquisitions, as the economy grows. Vara expects more M&A activity in Mexico across the board, with banks getting into a better position to lend, particularly in the $500 million and under sector. LF

Working the Rolodex

Boutiques started up in the last few years have survived by leveraging the contacts that partners made at their bulge bracket former employers, says Carlos Vara, former head of LatAm investment banking at Citi. Vara co-founded Mexican specialist Vace with former Citi Mexico IB head Ricardo Cervera. It entered a market dominated by well-established specialists, Vara says, adding that the boutique

24 LatinFinance

November/December 2010



Latin Finance - November/December 2010

Table of Contents for the Digital Edition of Latin Finance - November/December 2010

Latin Finance - November/December 2010
Contents
Latam-China Flows
Boutique Investment Banking
Infrastructure Investment
Banks of the Year 2010
Sustainable Banking
Central America
Mezzanine Financing
Petrobras Equity Jumbo
Xstrata Interview
Latin Finance - November/December 2010 - Latin Finance - November/December 2010
Latin Finance - November/December 2010 - Cover2
Latin Finance - November/December 2010 - Contents
Latin Finance - November/December 2010 - 2
Latin Finance - November/December 2010 - 3
Latin Finance - November/December 2010 - 4
Latin Finance - November/December 2010 - 5
Latin Finance - November/December 2010 - 6
Latin Finance - November/December 2010 - 7
Latin Finance - November/December 2010 - 8
Latin Finance - November/December 2010 - 9
Latin Finance - November/December 2010 - 10
Latin Finance - November/December 2010 - 11
Latin Finance - November/December 2010 - Latam-China Flows
Latin Finance - November/December 2010 - 13
Latin Finance - November/December 2010 - 14
Latin Finance - November/December 2010 - 15
Latin Finance - November/December 2010 - 16
Latin Finance - November/December 2010 - 17
Latin Finance - November/December 2010 - Boutique Investment Banking
Latin Finance - November/December 2010 - 19
Latin Finance - November/December 2010 - 20
Latin Finance - November/December 2010 - 21
Latin Finance - November/December 2010 - 22
Latin Finance - November/December 2010 - 23
Latin Finance - November/December 2010 - 24
Latin Finance - November/December 2010 - 25
Latin Finance - November/December 2010 - Infrastructure Investment
Latin Finance - November/December 2010 - 27
Latin Finance - November/December 2010 - 28
Latin Finance - November/December 2010 - 29
Latin Finance - November/December 2010 - 30
Latin Finance - November/December 2010 - 31
Latin Finance - November/December 2010 - 32
Latin Finance - November/December 2010 - 33
Latin Finance - November/December 2010 - 34
Latin Finance - November/December 2010 - 35
Latin Finance - November/December 2010 - Banks of the Year 2010
Latin Finance - November/December 2010 - 37
Latin Finance - November/December 2010 - 38
Latin Finance - November/December 2010 - 39
Latin Finance - November/December 2010 - 40
Latin Finance - November/December 2010 - 41
Latin Finance - November/December 2010 - 42
Latin Finance - November/December 2010 - 43
Latin Finance - November/December 2010 - 44
Latin Finance - November/December 2010 - 45
Latin Finance - November/December 2010 - 46
Latin Finance - November/December 2010 - 47
Latin Finance - November/December 2010 - 48
Latin Finance - November/December 2010 - 49
Latin Finance - November/December 2010 - 50
Latin Finance - November/December 2010 - 51
Latin Finance - November/December 2010 - 52
Latin Finance - November/December 2010 - 53
Latin Finance - November/December 2010 - 54
Latin Finance - November/December 2010 - 55
Latin Finance - November/December 2010 - 56
Latin Finance - November/December 2010 - 57
Latin Finance - November/December 2010 - 58
Latin Finance - November/December 2010 - 59
Latin Finance - November/December 2010 - 60
Latin Finance - November/December 2010 - 61
Latin Finance - November/December 2010 - 62
Latin Finance - November/December 2010 - 63
Latin Finance - November/December 2010 - 64
Latin Finance - November/December 2010 - 65
Latin Finance - November/December 2010 - 66
Latin Finance - November/December 2010 - 67
Latin Finance - November/December 2010 - Sustainable Banking
Latin Finance - November/December 2010 - 69
Latin Finance - November/December 2010 - Central America
Latin Finance - November/December 2010 - 71
Latin Finance - November/December 2010 - 72
Latin Finance - November/December 2010 - 73
Latin Finance - November/December 2010 - 74
Latin Finance - November/December 2010 - 75
Latin Finance - November/December 2010 - 76
Latin Finance - November/December 2010 - 77
Latin Finance - November/December 2010 - 78
Latin Finance - November/December 2010 - Mezzanine Financing
Latin Finance - November/December 2010 - 80
Latin Finance - November/December 2010 - 81
Latin Finance - November/December 2010 - Petrobras Equity Jumbo
Latin Finance - November/December 2010 - 83
Latin Finance - November/December 2010 - 84
Latin Finance - November/December 2010 - 85
Latin Finance - November/December 2010 - Xstrata Interview
Latin Finance - November/December 2010 - 87
Latin Finance - November/December 2010 - 88
Latin Finance - November/December 2010 - Cover3
Latin Finance - November/December 2010 - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com