NEW YORK--(BUSINESS WIRE)--BTG Pactual Asset Management, a leading global investment platform with over US$ 70 billion in AUM/AUA1, is pleased to announce the launch of BTG Pactual Strategic Capital (“Strat Cap”), a new investment strategy and fund within its Tangible Assets Group (“TAG”). Strat Cap is an opportunistic investment strategy focused on asset-oriented businesses.
Strat Cap brings a partnership approach to investing in both sponsor backed and non-sponsor businesses. The team has substantial expertise executing a variety of complex transactions. Strat Cap has a flexible mandate with an ability to invest across the capital structure, from common equity through senior secured debt, allowing solutions to be tailored to individual business or transaction requirements. Strat Cap generally targets investments of US$ 25 million to US$ 400 million (or more with co-investors) in companies with enterprise values from US$ 75 million to US$ 4 billion.
The Strat Cap team is targeting “realistic” private equity returns with a focus on downside protection and shorter duration.2 The Strat Cap team, based in New York, is led by James Frank. Mr. Frank, formerly of Apollo Management and a Partner at the Yucaipa Companies, recently led the Tactical Opportunities Business at Medley Management.
James Frank commented, “I am excited to launch this new effort after having worked closely with the principals at BTG Pactual on a prior transaction. Our collaborative, partnership approach to working with sponsors, management and business owners will help position Strat Cap as a provider of choice. We look forward to serving our growing marketplace.”
Strat Cap has completed three investments leading up to the launch of the Strat Cap fund in Q1, 2021, committing ~US$ 240 million (via balance sheet capital and co-investments) in three companies: Aurora Industrial, IQHQ, and NorthStar Group Services.
Gerrity Lansing, Head of TAG at BTG Pactual, said: “We are extremely pleased with the progress of Strat Cap. We expected a strong pipeline of opportunities for customized capital solutions in this space, which has been proven out to date with the disciplined execution of three investments leading up to the launch of Strat Cap. The team brings substantial expertise and we believe is positioned for great success with the strategy.”
About BTG Pactual Strategic Capital
BTG Pactual Strategic Capital (“Strat Cap”) is an opportunistic investment strategy focused on asset-oriented businesses. Strat Cap partners with sponsors, management teams and business owners to create value. Strat Cap is led by a seasoned investment team with relevant experience in private equity, credit and tangible assets. Strat Cap is a part of the BTG Pactual Tangible Assets Group, which has nearly US$ 4 billion in assets and commitments.3
About BTG Pactual
BTG Pactual (BPAC11) is the largest investment bank in Latin America and operates in the Investment Banking, Corporate Lending, Sales & Trading, Wealth Management and Asset Management markets. BTG Pactual Asset Management has an international presence with over US$ 70 billion in assets under management and administration as of December 2020. Since its inception in 1983, BTG Pactual has been managed based on the meritocratic culture of partnership, with focus on customer, excellence and long-term vision. The institution has consolidated itself as one of the most innovative in the sector, having won several national and international awards. Currently, it has almost 3,000 employees in offices throughout Brazil, Chile, Argentina, Colombia, Peru, Mexico, the United States, Portugal and England. For more information, please visit http://www.btgpactual.com.
1 Source: BTG Pactual. Financial data as of December 31, 2020. The figures presented in this are those of Banco BTG Pactual S.A., and its affiliates
2 Private equity IRR has been ~15% net on average since 2009. Source: Bain & Company, February 2020. Targets might not be achieved and does not represent a guarantee of future returns.
3 As of April 2021, including US$ 340M that is pending settlement in 2Q2021. There is no guarantee that the pending transaction will close.