Ontario Teachers’ Pension Plan head office in TorontoSami Siva
The Ontario Teachers' Pension Plan is one of a handful of lead investors who are injecting new capital into BTG Pactual, the Brazilian bank that was briefly part of UBS.
The consortium that will be buying $1.8-billion (U.S.) of newly issued BTG shares (amounting to an 18.65 per cent stake) includes a who's who of sovereign wealth funds: the Government of Singapore Investment Corp., China Investment Corp., and the Abu Dhabi Investment Council. Other participants include JC Flowers and Co., RIT Capital Partners and Lord Rothschild's family interests, the Santo Domingo Group and EXOR.
Each party has agreed not to discuss its individual contribution, but The Financial Times reports that Teachers is among the five lead investors who are contributing between $200-million and $300-million each.
They are paying for the opportunity to be involved in the investment banking and wealth management industries in the booming Brazilian economy. BTG is a top local player for equity issuances and M&A.
Its new investors are also no doubt lured by the potential of an IPO. Billionaire Andre Esteves, who along with his partners bought the bank back from UBS for $2.5-billion last year, said BTG is still considering an IPO as a "natural development," according to Bloomberg news.
BTG cancelled an initial public offering this year due to market conditions.