Latin Finance - March/April 2011 - 30

man of the year

denies that BTG relies on UBS for any distribution aid. “At this moment, UBS has much less distribution power for a Brazilian IPO than us,” he adds, saying that the Swiss bank does not have a stake in BTG. Meanwhile, the banker does not rule out M&A to expand the LatAm reach. “There is a possibility of some acquisitions, some partnerships, some joint ventures,” says Esteves. He declines to comment on what BTG is planning short-term. BTG will eventually look to go public, says Esteves. “Not soon, because we have plenty of capital, but I would say that we are planning it. It’s something for the next maybe one or two years,” says the banker. The firm had reportedly been planning to float in 2010, but it went instead to the private market. Separately, BTG is heard raising a $1 billion private equity fund for Brazil and fundraising is said to be close to wrapping up, after six months. BTG is apparently investing its own capital to take roughly 30% of the fund, which is mainly client money. It will come partly from Brazil HNW customers and the rest overseas, mainly institutional accounts. “Being a provider of equity to our clients, I think it’s an edge for us in terms of providing solutions,” says Esteves.

drinks, making sure even the most junior associate was comfortable and well taken care of. “It’s easier to work for him than to have him work for you,” says Huw Jenkins, London-based managing partner at BTG Pactual. “He’s always trying to work out how most efficiently he can use the next hour,” says Jenkins, who managed Esteves in his former role as CEO at UBS Investment Bank. Jenkins concurs with the views of many São Paulo-based bankers that Esteves will have a lasting impact. “[He has a] reputation as a trader, as a dealmaker; but in fact it is now clear he will be one of the defining businessmen of his generation,” says Jenkins.

Esteves appears able to stay grounded, despite his impressive run and growing share of the limelight. He is sometimes portrayed as being highly motivated by accumulating a fortune, but rejects this as a driver. “It’s not about the money. I think it’s about being part of this transformation of Brazil and being an engine of that and helping to move the country in the right direction, that’s what motivates us,” says Esteves. Asked about the secret of his success, the banker says, “We believe in simple concepts here, we’re a very meritocratic Inspiring a Generation organization. We have a huge ambition, The competition likes to question BTG’s but it’s a long-term ambition.” To distribution capability as much as its achieve that, he says he nurtures a ability to manage potential conflicts of transparent environment and partnership interest. But it is hard to find a banker at style, emphasizing teamwork to reach a rival firm with a bad word to say about Esteves. Some say he is Brazil’s answer to decisions. Hard work is the crux. Asked what Steve Jobs. this means for him, Esteves responds: “André has been inspiring a whole “Sometimes it goes to 24 hours. The last new generation of investment bankers,” weekend was more like 24 hours a day says Ana Cabral-Gardner, managing than anything else . . . Generally it’s 12-13 director at Barclays Capital in São Paulo. “Most of the 20-30 year-old bankers today hours a day.” Esteves says his strengths include would like to become André Esteves being focused, practicing meritocracy someday,” adds Cabral-Gardner, who (“Easy to say but very hard to practice,” worked with Esteves at Pactual from he quips) and being humble enough to 1992-1993. Colleagues describe Esteves as focused understand limitations. The latter “helps and hardworking, but also approachable. enormously when managing risk,” says the banker. One recalls a February 2011 trip with He declines to comment on his worst Esteves on a Falcon 900 jet during which qualities, though he does admit that the the boss served his staff dinner and

Humble People

firm can be too obsessed about doing the right thing. “We are always frustrated here when we lose an opportunity, when we commit a mistake in the markets, when we have a wrong view,” says Esteves. Esteves is outspoken on the need for Brazil to improve its education system, though he stresses that philanthropy is done at the individual partner level, not by the bank. “We want to be respected for our business actions, not for our donations or anything like that,” he adds. Esteves supports education and environmental charities. He is a board member of Conservation International. “Education is the most important bottleneck in the Brazilian economy and if you ask me what is the most important long-term risk, it’s not a financial risk, I think it’s not promoting education to the right level.” Asked about downtime, Esteves professes a love of his job, though he also enjoys cinema, music, wine and good food. “I personally have a lovely family and I take my children every day to school, so it’s a simple life: work and family,” says the banker. “We have fun here,” he add. Esteves has three children, aged 12, nine and five. He laughs off any suggestion that he might practice the sport favored by many of his networking competitors. “Imagine, golf! You waste four hours playing with one client. In four or five hours we meet three or four clients,” he chortles. “I couldn’t play golf.” With such momentum and financial power, the young financier has the potential to be a charismatic presence on the stump. He ducks questions about whether he might one day go into politics. Running into the next meeting, Esteves takes the time to tell this interviewer how he is keen to stay in touch and keep talking. Unlike most billionaires these days, he does not insist contact is made only though a complex system of handlers – Esteves is refreshingly entourage-free. “We are simple people, just call us and we’ll answer!” says the banker, running off to the next room for a meeting with Goldman Sachs’ global president and chief operating officer Gary Cohn. LF

30 LatinFinance

March/April 2011

Latin Finance - March/April 2011

Table of Contents for the Digital Edition of Latin Finance - March/April 2011