MercoPress. South Atlantic News Agency

Latin America's largest investment bank targets Uruguay as regional hub after acquiring local HSBC unit

Founded in 1983 in Rio de Janeiro, the group is present in Brazil, Argentina, Chile, Colombia, Mexico, and Peru

Brazilian group BTG Pactual, Latin America's largest investment bank, is awaiting authorisation from Uruguay's Central Bank (BCU) to begin operating in the local financial market following its $175 million acquisition of HSBC Uruguay, agreed in July 2025. Group executives expect regulatory approval to come through by mid-year, allowing them to begin operations gradually in the second half of 2026.

“We estimate that by mid-year we should be operational,” said Dirk Mengers, head of sales and business development for Latin America excluding Brazil at BTG Pactual Asset Management, speaking on the sidelines of the Pro Capital Conference 2026, held in Montevideo on April 15. Mengers described Uruguay as “a kind of Singapore of Latin America,” referring to the country's role as a regional investment hub attracting capital flows from Argentina, Chile, and Brazil.

The acquisition of HSBC Uruguay — which has operated in the country since 2000 with five branches and a head office in Montevideo, and describes itself as the largest international bank active in the local market — forms part of a simplification strategy announced by the British group in October 2024. The transaction covers retail, corporate, and institutional banking divisions, and provides for the transfer of all employees to BTG Pactual upon completion.

For BTG Pactual, the entry into Uruguay represents another step in a sustained regional expansion. Founded in 1983 in Rio de Janeiro, the group is present in Brazil, Argentina, Chile, Colombia, Mexico, and Peru, and in 2024 began the acquisition of US-based bank M.Y. Safra, headquartered in New York and Miami, with the aim of serving Latin American clients in the United States. In January 2026, Peru's banking regulator authorised the establishment of a local BTG Pactual subsidiary.

Mengers argued that Uruguay offers unique conditions in the region for channelling international investment, particularly due to its tax environment, institutional stability, and the growing financial literacy of its population. “They naturally seek this gateway to the world because it is one of the most efficient available in Latin America, especially in tax terms,” he said. The executive added that volatility stemming from the Middle East conflict and uncertainty surrounding the US economy are redirecting capital flows toward Latin America, a region he described as becoming “extremely attractive.”

BTG Pactual is widely regarded in international financial markets as the Latin American equivalent of Goldman Sachs in investment banking, with a footprint spanning asset management, capital markets, and corporate banking.