Latin Finance - November/December 2009 - 28

best boutique investment banks Niche Keeps Growing by Ben Miller I n the months that the bulge bracket investment bank spent hemorrhaging cash, being intervened and laying off staff, new opportunity emerged for boutiques. Specialist providers of investment banking services – some formed by talent regurgitated by Wall Street – are exploiting demand for impartial advice from institutions with a clean slate that lack conflicts of interest often caused by cross-selling. For the first time, LatinFinance has ranked the best providers of specialist investment banking services operating in the region. Such institutions can vary in size, but all are chosen by clients for their skills and knowledge, rather than ability to provide funding. A standout for M&A in the region is Rothschild, which operates very much as a boutique in LatAm, even though in other regions it is part of a major investment banking franchise. The shop had its stamp on most of Brazil’s biggest M&A deals, some of which created entities fit to compete on a global stage. Rothschild provided a fairness opinion to Unibanco on a merger with Itaú that created the largest bank in the region. The shop also advised Telemar on a 12 billion real Brasil Telecom buy. And poultry producer Sadia turned to Rothschild for advice on a share swap in conjunction with its merger with rival Perdigão to forge world poultry leader Brasil Foods. In the region’s other markets, Rothschild has advised Controladora Comercial Mexicana on its $3.0 billion restructuring that followed derivative losses last year, as well as Chile’s Colbun on a $1.3 billion restructuring. Specialist providers of investment banking services have attracted top quality talent in the downturn. The challenge is maintaining momentum as markets revive. environment,” Roberto Paiva, Rothschild’s head of LatAm investment banking, tells LatinFinance. He notes increased competition from smaller boutiques in the region, though Rothschild still mainly finds itself up against large investment banks, in both M&A and restructuring. “We believe that during the next few years it is likely that we see a larger share of intra-regional deals,” says Paiva. “As a robust number of companies in the region look for growth outside their frontiers, we foresee intra-regional M&A driven by consolidation activity across Latin America.” He cites as an example the recent sale by Lafarge of its Chilean operations to a Peruvian group. And Rothschild is not alone. Lazard, for example, has been building up its presence through joint ventures covering Brazil, Mexico, Argentina, Chile, and several other markets. Cemex and Ecuador tapped the boutique for two of the year’s largest restructurings. Brazil, perhaps the region’s most developed market for boutiques, also boasts the most formidable competition. Estáter Gestão e Finanças stands out for its work on one of the year’s most important transactions. The M&A and restructuring house advised Companhia Brasileira de Distribuição on its acquisition of Globex Utilidades and its main asset, the Ponto Frio home appliances retail chain. In the 870 million real deal, CBD beat out competitors Magazine Luiza, a BTGInsinuante partnership, and Grupo Silvio Santos. Goldman Sachs advised Globex and shareholders on the sale of the asset, most recently put on the block in the latter part of 2008. CBD had exclusively worked with Estáter, founded in 2003 and led by former Brazil: Estáter of Grace Boutiques grabbing share, says Aspe Rothschild expects to see less restructuring related activity and brisker M&A in the near future. This includes selective cross-border flow driven by buyers from outside the region. He says private equity should reactivate gradually, as regional players continue to hunt opportunity. Continued consolidation in the consumer, energy and insurance sectors is also likely, he adds. Intra-Regional M&A Flow “We have seen our relationship-driven business model thrive in the current 28 LatinFinance November/December 2009

Latin Finance - November/December 2009

Table of Contents for the Digital Edition of Latin Finance - November/December 2009

Latin Finance - November/December 2009
Contents
Latam-China Flows
Petrobras Interview
Best Boutiques
Banks of the Year 2009
Itau Unibanco Interview
Mexico: How to Capitalize on Crisis
Colombia: Local Shop Repels Foreign Pretenders
Chile: Pefecting the Art of Retail
El Salvador: A Foreign-owned Bank Dominates
Infrastructure & Energy Awards
Private Equity Fundraising
Latin Finance - November/December 2009 - Latin Finance - November/December 2009
Latin Finance - November/December 2009 - Cover2
Latin Finance - November/December 2009 - Contents
Latin Finance - November/December 2009 - 2
Latin Finance - November/December 2009 - 3
Latin Finance - November/December 2009 - 4
Latin Finance - November/December 2009 - 5
Latin Finance - November/December 2009 - 6
Latin Finance - November/December 2009 - 7
Latin Finance - November/December 2009 - 8
Latin Finance - November/December 2009 - 9
Latin Finance - November/December 2009 - 10
Latin Finance - November/December 2009 - 11
Latin Finance - November/December 2009 - 12
Latin Finance - November/December 2009 - 13
Latin Finance - November/December 2009 - 14
Latin Finance - November/December 2009 - 15
Latin Finance - November/December 2009 - 16
Latin Finance - November/December 2009 - 17
Latin Finance - November/December 2009 - Latam-China Flows
Latin Finance - November/December 2009 - 19
Latin Finance - November/December 2009 - 20
Latin Finance - November/December 2009 - 21
Latin Finance - November/December 2009 - 22
Latin Finance - November/December 2009 - 23
Latin Finance - November/December 2009 - Petrobras Interview
Latin Finance - November/December 2009 - 25
Latin Finance - November/December 2009 - 26
Latin Finance - November/December 2009 - 27
Latin Finance - November/December 2009 - Best Boutiques
Latin Finance - November/December 2009 - 29
Latin Finance - November/December 2009 - 30
Latin Finance - November/December 2009 - 31
Latin Finance - November/December 2009 - Banks of the Year 2009
Latin Finance - November/December 2009 - 33
Latin Finance - November/December 2009 - 34
Latin Finance - November/December 2009 - Mexico: How to Capitalize on Crisis
Latin Finance - November/December 2009 - 36
Latin Finance - November/December 2009 - 37
Latin Finance - November/December 2009 - 38
Latin Finance - November/December 2009 - Colombia: Local Shop Repels Foreign Pretenders
Latin Finance - November/December 2009 - Chile: Pefecting the Art of Retail
Latin Finance - November/December 2009 - 41
Latin Finance - November/December 2009 - 42
Latin Finance - November/December 2009 - El Salvador: A Foreign-owned Bank Dominates
Latin Finance - November/December 2009 - 44
Latin Finance - November/December 2009 - 45
Latin Finance - November/December 2009 - 46
Latin Finance - November/December 2009 - 47
Latin Finance - November/December 2009 - 48
Latin Finance - November/December 2009 - 49
Latin Finance - November/December 2009 - Infrastructure & Energy Awards
Latin Finance - November/December 2009 - 51
Latin Finance - November/December 2009 - 52
Latin Finance - November/December 2009 - 53
Latin Finance - November/December 2009 - 54
Latin Finance - November/December 2009 - Private Equity Fundraising
Latin Finance - November/December 2009 - 56
Latin Finance - November/December 2009 - Cover3
Latin Finance - November/December 2009 - Cover4
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