As André Esteves approached the microphone that looked over the floor of the BMF&Bovespa the electronic ticker board above his head flashed up the news update: “Credit Suisse rebaixa [lowers] Itaú Unibanco para [to] “underperform”. All eyes were on Esteves, though, and it’s doubtful whether many of the men (there was also a smattering of women) who were looking up at their leader, and who all wore matching commemorative blue ties and smiles, registered this slice of cosmic irony.

Irony because as Itaú Unibanco – a division of which, Itaú BBA, is BTG’s closest investment banking rival – has hit consumer credit headwinds in Brazil, the newly-listed BTG stock was about to hit the ground running.

There are two features of the BTG Pactual IPO that should give investors in this remarkable story confidence that, despite its high launch valuation, its stock shouldn’t underperform the market. One is a short term feature, the other is long-term. But the bank’s management should be applauded for both.

For the rest of this article see Euromoney’s May issue: http://www.euromoney.com