Business grows when opportunities for lower-performing or less viable opportunities open up. In the case of investment banking, Latin America is ripe for Brazil–even as its economy is only slowly recovering from what FT.com calls a potential “lost decade.”
Roberto Sallouti, chief operating officer of BTG Pactual, said the current trend was similar to what happened during the 2008-9 financial crisis, when many global banks pulled back from Latin America and left space for local firms to grow.
“The other guys are still there,” Mr. Sallouti said, “but we are eating into their market share.”
While the Latin American economies are not as robust as they once were, the region generated over $1.6 billion in investment banking fees last year, according to Freeman Consulting Services, an investment banking advisory firm based in New York.