BR Partners to Buy Banco Porto Seguro to Start Brazilian Investment Bank

BR Partners, the Brazilian financial-advisory firm founded by former Goldman Sachs Group Inc. executives, agreed to buy Banco Porto Seguro SA (PSSA3) for an undisclosed amount.

After the acquisition, which depends on the central bank’s approval, the bank will have capital of 120 million reais ($66 million), according to Andrea Pinheiro, chief operating officer of the Sao Paulo-based company. Including the bank and the asset-management and private-equity units, BR Partners will have capital of 210 million reais, Pinheiro said.

Banco Porto Seguro has a multiple-bank license and 19.5 million in capital, and the plan is transform it into an investment bank and broker-dealer license to lower operational costs, Pinheiro said in a telephone interview. The firm wants to provide initial public offerings for companies next year, “and we thought the approval process would be quicker this way,” Pinheiro said.

In February, BR Partners filed a request with the central bank for an investment banking and broker-dealer license. At the time, it said that the bank would have capital of 50 million reais and the broker dealer would have 15 million reais.

“We decided to grow this capital to 120 million reais to transform BR Partners into a more robust bank,” Pinheiro said.

Doubling the Team

The financial-advisory firm, created two years ago, said in September it would double its team to 150 people over 18 months to set up capital markets, broker-dealer, private-equity and asset-management desks, according to Ricardo Lacerda, the former head of Goldman Sachs’s Brazil businesses who is BR Partners’ chief executive officer.

“It´s an incredible time to be starting an independent financial institution with a clean slate and without any legacy assets, especially in Brazil, which is currently one of the brightest spots in the world economy,” Lacerda said in an telephone interview.

BR Partners has an agreement with Raymond James Financial Inc., based in St. Petersburg, Florida, to exchange research and work together in capital-markets deals.

To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net

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