Metals Trader Rath Exits BTG Pactual Commodities in Singapore

  • Rath and Gold Matrix traders joined BTG in Singapore last year
  • Rath to start new trading business once gardening leave ends

Singapore metals trader Pinaki Rath has left BTG Pactual Commodities to set up his own venture less than a year after joining the trading house controlled by the Brazilian bank.

Rath moved to BTG as head of base-metals trading for Asia and the Middle East last year, along with a group of traders from Gold Matrix Resources Pte Ltd., a physical metals and scrap trading business he founded in 2005.

Rath confirmed his exit from BTG when reached by phone in Singapore on Thursday. He said the parting was amicable and plans to start a new metals-trading venture after he completes about three months of gardening leave.

The departure of Rath comes as Grupo BTG Pactual considers a plan to grant equity in its commodity-trading unit to a group of managers and traders after deferring some bonus payments, according to people with knowledge of the matter. The move is intended to retain top talent and preserve the value of the business started in 2013, as well as reassuring lenders and trading partners, the people said.

A spokeswoman for BTG in London declined to comment on Rath’s departure.

BTG held talks with potential investors in the commodities unit late last year, but the discussions didn’t yield a deal.

Metals Shakeup

The founder and former chief executive officer of the commodity trader’s Brazilian parent bank, Andre Esteves, was arrested in November in a corruption investigation. Esteves has denied any wrongdoing through his lawyers and BTG has said it isn’t part of the investigation.

Ronen Arielly, a former Trafigura Group Pte Ltd. executive hired in 2013, is the head of BTG’s Asian operations.

Rath’s exit is the latest in a series of shakeups in the metals-trading sector amid a rout in prices. Gunvor Group Ltd. said last month it was getting out of the metals-trading business and its top trader, Singapore-based Rene Van Der Kam, left the firm.

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