Bain & Company opens an office in Rio de Janeiro, Brazil

International strategy consultancy Bain & Company has opened a new office in Rio de Janeiro. The office will be led by three Bain partners.

In a press statement, Giovanni Fiorentino, chairman of Bain & Company in South America, said that the launch of the firm’s latest hub is in response to the surge in demand for strategic advisory services in the region, driven by the approaching 2014 World Cup and growing demand from the oil and gas sector.

According to analysts, Rio de Janeiro will become one of the world's hottest destinations for oil and gas companies and investors over the next number of years. Recently, a huge "pre-salt" offshore oil field was discovered off the coast of Rio de Janeiro. Pre-salt oil fields are found in deep-sea areas under thick layers of salt; extraction is difficult and technology intensive, thus requiring large-scale investment for extraction. As such, big petroleum multinationals like Schlumberger, Petrobras, and BP are already setting up shop in the area.

Semi-public Brazilian multinational Petrobras – a specialist in deep-water oil extraction – has on the back of the news announced that it will invest $224 billion in the coming years to win rights to the oil field. It is expected that the oil field discovery will double the number of barrels produced in Brazil to 4 million barrels per day within 6-7 years. Brazilian oil production is further expected to grow to 6 million barrels within 12-13 years. 

The hosting of the 2014 World Cup is another development which is set to provide a huge boost to Brazil’s consulting industry. In preparation of the globe’s largest sporting event, public and private sector institutions are investing heavily in industries including tourism, hotels, infrastructure and telecom.

Bain & Company has meanwhile started the recruitment drive for its new Rio de Janeiro office, a feat which Fiorentino admits will be a challenge. Bain recruits the brightest minds in the countries it is active in, and in its search for talent competes with the likes of McKinsey & Company and The Boston Consulting Group. “It is a large challenge to find suitable talent because everyone is after the same talents,” said Fiorentino.