Goldman Sachs Group Inc. (GS), the fifth-largest U.S. bank, expanded its management team for Brazil investment banking, naming Daniel Wainstein chairman and adding two co-chief operating officers.
Antonio Pereira and Fabio Bicudo, previously managing directors at the New York-based company, were named co-COOs and Wainstein, 42, who was head of the Brazil investment bank, will become chairman effective immediately, Stephen Scherr, Goldman Sachs’s chief for Latin America and global head of the investment bank’s financing group, said in an interview.
“We have been expanding the team, and we need Daniel to have more client engagement,” Scherr said, adding that Goldman Sachs has doubled the number of employees as revenue increased from the business in the past three years. Goldman Sachs has about 300 people in Brazil, Scherr said.
Pereira and Bicudo “will assist Daniel in the day-to-day management tasks,” freeing him up to develop client relationships, Scherr said.
The firm, which doesn’t disclose Brazil revenue or profit, last month named Paulo Leme as chairman for the country. The firm has said its strategy in Brazil is to focus on complex products with higher profit margins, such as convertible debt and receivables securitization.
U.S. and international banks are competing against Brazil- based companies such as Banco Itau BBA SA and Banco BTG Pactual SA, which have used their stronger local contacts to squeeze out foreign firms.
Goldman Sachs didn’t make the top 10 in any Brazil investment-banking category in 2009 or 2010, excluding international bonds, according to data compiled by Bloomberg. The firm was No. 8 among Brazil merger advisers last year, with $14.8 billion in deals, and ranks 10th this year for M&A, with two deals totaling $2.62 billion.
Goldman Sachs completed its strategy to become a full- service bank in Brazil in 2009, after two failed attempts to buy local firms. In 1998, Goldman Sachs tried to buy Banco de Investimentos Garantia SA, which was acquired by Credit Suisse Group AG.
Seven years later it sought to purchase Banco Pactual SA, an investment bank later acquired by UBS AG. Pactual was sold back to BTG Partners in 2009 and is now Banco BTG Pactual SA. BTG went public this week in a $1.94 billion initial offering that Goldman Sachs helped underwrite.
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