The move comes as part of BTG Pactual's broader strategy to expand its digital banking services, and it aims to provide enhanced investment options to its clientele. Official representatives from BTG cited by cointelegraph.com expressed enthusiasm about the acquisition and emphasised that it would grant Orama customers access to BTG's comprehensive platform. However, it's important to note that the completion of this acquisition is contingent upon receiving the requisite regulatory approvals from authorities, including Brazil's central bank.
Founded in 2011, Orama has accumulated nearly USD 3.6 billion in assets under custody, serving approximately 360,000 clients. While initially focused on distributing investment funds and fixed-income products, Orama has also ventured into the realm of cryptocurrency investments.
In April 2022, Orama's wealth management division, Orama Singular, introduced Block3, an actively managed fund tailored to digital assets. Block3 provides diversified exposure to the cryptocurrency industry, encompassing assets such as Bitcoin, tokens, derivatives, and others.
It remains uncertain whether BTG Pactual's acquisition of Orama will lead to the introduction of new cryptocurrency-related products within the bank. BTG Pactual has previously engaged in various crypto-related initiatives, including plans to launch BTG Dol, a stablecoin pegged to the US dollar at a 1:1 ratio, utilising the bank's custody services. Furthermore, the bank has rolled out a cryptocurrency trading application, enabling clients to directly invest in digital assets.
In August 2023, BTG Pactual went forward with another acquisition, this time concerning Magnetis Investimentos. The acquisiton aimed to expand BTG Pactual’s customer base, and it gave BTG Pactual access to a set of technology solutions and systems that have been developed for more than 10 years.
Magnetis, founded in 2015 by Luciano Tavares, makes use of robo-advisor technology to determine asset allocation strategies for a high-net-worth clientele. According to latamlist.com, Magnetis has attracted significant investments from prominent players such as Swiss wealth manager Julius Baer, Brazilian venture capital firm Monashees, Redpoint Ventures, and Vostok Emerging Finance.
In June 2023, international-adviser.com reported that specialist asset manager Impax Asset Management has signed a distribution agreement with BTG Pactual US Capital. Under the terms of the agreement, BTG Pactual would distribute Impax’s range of Irish-domiciled Ucits funds to its clients in Latin America, which include institutional investors and financial intermediaries.
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