BPAC11

Banco BTG Pactual S.A. is a Brazilian financial institution, with BPAC3, BPAC5 and BPAC11 units traded on B3. Its history dates back to 1979, when Aplicap S.A. Distribuidora de Títulos e Valores Mobiliários was founded and later renamed Pactual DTVM in 1983. The group’s expansion gained scale starting in 1989, with the granting of a banking license to operate as a multiple bank under the name Banco Pactual S.A., broadening its scope to include commercial, investment, foreign exchange, mortgage financing, savings and lending operations. Over the following decades, the bank consolidated its presence in the Brazilian capital markets, building specialized areas in asset management, wealth management, investment banking and sales & trading, in parallel with Brazil’s macroeconomic stabilization and the development of the local capital markets.

The recent history of Banco BTG Pactual is marked by significant mergers, acquisitions and corporate reorganizations. In 2006, the then Banco Pactual was acquired by UBS AG, becoming Banco UBS Pactual S.A. in Latin America. In 2008, former partners of the bank and executives with experience in developed and emerging markets created BTG Investments L.P., later PPLA Investments L.P., focused on global investment banking. In 2009, the acquisition of UBS Pactual by this group was completed, giving rise to the current BTG Pactual Group and the name Banco BTG Pactual S.A. From that point on, the institution went through a cycle of capitalization and international expansion, with a capital raise for foreign investors in 2010, acquisitions of relevant assets in Latin America such as Celfin Capital in Chile and Bolsa y Renta in Colombia, and diversification of operations, including an equity stake in Banco Pan and the acquisition of portfolios and rights from the former Banco Bamerindus.

Banco BTG Pactual’s business model is structured as an investment and wholesale bank with a strong asset management component and a digital retail platform, operating under a meritocratic partnership model with hundreds of partners. Its main business areas include Investment Banking, Corporate & SME Lending, Sales & Trading, Asset Management and Wealth Management & Consumer Banking, in addition to stakes in financial institutions and insurers such as Banco Pan and Too Seguros. The institution combines fee income and trading revenues in local and international markets, which results in a diversified revenue base, with emphasis on corporate lending, securities brokerage, distribution of investment products, fund management and high-net-worth and private banking mandates.

In Investment Banking, Banco BTG Pactual is one of the leading coordinators of equity and debt offerings in Latin America, in both public and private deals, providing advisory services in mergers and acquisitions, corporate restructurings, spin-offs, reorganizations and other capital markets transactions. The area is segmented into Capital Markets, with activities in Equity Capital Markets (ECM) and Debt Capital Markets (DCM), and in M&A and Financial Advisory. The institution participates in equity offerings of Brazilian and Latin American companies listed on B3 and other exchanges, serving public companies, financial institutions, investment funds, governments and qualified investors, as well as foreign clients interested in accessing Latin American assets or listing on B3.

Banco BTG Pactual’s Sales & Trading activities cover a wide range of financial products across multiple asset classes. The institution offers market making, brokerage, clearing, investment research and structuring of transactions involving equities, derivatives, interest rate instruments, foreign exchange, energy and commodities, both for hedging and for proprietary and client trading. It also distributes insurance and reinsurance products, reinforcing the integrated offering of financial solutions for institutional, corporate and high-net-worth clients. This activity is complemented by the Asset Management business, which manages assets across various strategies and asset classes, mainly in Latin America, for local and global clients, with large volumes of assets under management and administration (AUM and AUA), in addition to Wealth Management & Personal Banking dedicated to individual clients, focusing on wealth management and financial planning.

The digital retail platform has been gaining relevance in Banco BTG Pactual’s strategy since the launch of BTG Pactual Digital in 2016, conceived as an online channel for the distribution of investments to the retail public. This front evolved into a unified structure that encompasses investment, credit and banking solutions for individuals, credit and services for small and medium-sized enterprises, insurance distribution, content production and data analytics, as well as initiatives such as BoostLAB, focused on accelerating technology companies in their growth stage. The incorporation of operations such as Ourinvest DTVM also enabled the development of BTG Pactual Advisors, a platform that combines investment technology with a network of independent investment agents, expanding the institution’s reach in the independent investment advisory segment.

Geographically, Banco BTG Pactual retains its origin and headquarters in Brazil, with a physical presence in six of the country’s main cities, including São Paulo and Rio de Janeiro, and strong penetration in Latin American markets. The group operates units in Chile, Colombia, Mexico, Peru and Argentina, as well as offices in New York, Miami, London, Lisbon, Madrid and Luxembourg, which function as hubs for the distribution of Latin American financial products, acquisition of international clients and management of global assets. This network supports the bank’s ambition to position itself as one of the main providers of financial services in the region, with the capability to serve issuers and investors across multiple jurisdictions.

Banco BTG Pactual’s activities are subject to regulation of the Brazilian financial system, with oversight from the Central Bank of Brazil and agencies such as the Brazilian Securities and Exchange Commission (CVM), particularly with respect to securities intermediation, distribution of public offerings, third-party asset management and fund administration. In the international markets where it operates, the group is also subject to the rules of local monetary authorities and regulators, including in financial centers such as the Cayman Islands, where it maintains a structure with an international banking license and a trust license. This regulatory framework influences how the business is conducted, capital allocation, risk management and compliance with prudential requirements such as Basel capital ratios.

In terms of corporate governance practices, Banco BTG Pactual combines its partnership structure, with several hundred partners responsible for management and strategic direction, with the fact that it is a publicly traded company with shares and units listed on B3, subject to rules on transparency, disclosure and minority shareholder protection. The institution emphasizes internal meritocracy as the basis of its corporate culture and reports the performance of its business areas on a segmented basis, highlighting revenues, net income, return on equity (ROE), assets under management and capital structure. This combination of a listed bank with an international presence and a focus on capital markets, wealth management and digital retail positions Banco BTG Pactual as one of the leading financial groups in Latin America with shares traded on the Brazilian stock exchange.