Mexican and Brazilian cities fair well in latest global financial center ranking

17 September 2018

Mexico City, São Paulo and Rio de Janiero have all moved up the rankings in the Global Financial Centres Index, a financial markets competitiveness report released by British research consultancy Z/Yen Partners.

The index, which has been developed in conjunction with the China Development Institute since 2016, is updated every September and March. Z/Yen Partners’ Global Financial Centres Index (GFCI) evaluates the competitiveness of 100 financial centres across the globe, from London, New York and Hong Kong through to Panama, Buenos Aires and Trinidad & Tobago – using 137 quantitative measures compiled from leading data sources and over 30,000 financial centre survey assessments.

In respect to the metrics used, which draw from sources such as the World Bank, the OECD, and the UN, the instrumental factors are broken down into the five broader categories of business environment, human capital, infrastructure, financial sector development, and reputation, with further inputs drawn from a range of global consulting firms including A.T. Kearney, Capgemini, Mercer, The Boston Consulting Group, and Big Four accountancy and consultancy firms PwC and KPMG.

Latin American And Caribbean Centres In GFCI 24

The ranking was topped by New York, which overtook London after the UK capital struggled through negotiations with Brussels. The next four places were dominated by Asian financial centers Hong Kong, Sinapore, Shanghai and Tokyo, indicating that the Asian century is well underway. Sydney, Beijing and Zurich made up the rest of the top 10.

All offshore financial centers in the Caribbean fell overall in the latest rankings bar one – Bermuda – which moved up 6 spots to 30th position. Just above Bermuda in 29th position is the Cayman Islands, which faired poorly with 17 points wiped off its rating. The next appearance from a financial center in the region is Brazil’s São Paulo at number 55. 

São Paulo outperformed the rest of Latin America and almost every other financial center mentioned in terms of improvement. The Brazilian financial capital is the centerpiece of the world’s 9th largest economy and moved up 12 spots in the six months since the 23rd GFCI. During that time São Paulo gained a rating of 616, a change in rating of 44, with the city only eclipsed by improvements in Tallinn, Estonia, Astana, Kazakstan, Doha, Qatar and Reykjavik.

Top Five Latin American And Caribbean Centres Over Time

Aside from São Paulo and Bermuda, the only other centers that rose in the index were Mexico City and Rio de Janeiro, leading the authors of the report to comment that there were “mixed results” throughout the region. The Mexican federal district gained 29 points to move up 8 spots on the index to 62nd. Rio de Janeiro also dramatically improved alongside its Brazilian sister city with an overall ranking of 65th, up from 81st earlier this year.  

Panama and the British Virgin Islands both gained in their score and yet fell on the index due to the strong performance of newcomers in Asia, Eastern Europe and the Middle East. The bottom 10% of the index featured Buenos Aires and Trinidad & Tobago which both dropped in their positions and their score, 18 and 13 spots respectively. Trinidad & Tobago experienced one of the most dramatic falls – with the country experiencing a downturn in oil production

The report’s authors note that in the past decade and a half – since the beginning of the GFCI –there has been a significant shift away from Western financial centers. “Financial centres can, and do, control large amounts of their destiny. GFCI 24 shows the wide range of strategy, competition, specialisation, and, may I say, style in which they do it,” Z/Yen’ CEO Michael Mainelli said in conclusion. 

Top consulting firms in Brazil for restructuring and turnaround

23 January 2019

A new analysis of surveys among clients on track record / engagement satisfaction and management consultants on reputation has identified Brazil’s top consulting firms for restructuring and turnaround services. 

Companies in Brazil facing financial and operational difficulties, including rapidly deteriorating commercial performance, liquidity concerns, loss of key management / clients or refinancing risk, can according to data sourced by best place their faith in ten consulting firms specialized in restructuring, turnaround and crisis management. These ten consultancies are: Alvarez & Marsal, FTI Consulting, G5 Evercore, Moelis & Co, Rothschild, KPMG, Laplace Financas, Pantalica Partners and RK Partners.

When companies fall in financial distress, executives need to move swiftly to stabilize the business, while working towards a more long term strategy for sustainable strategic, operational and financial change. Working alongside debtors, lenders, shareholders and other stakeholders, consultants support with solving short-term liquidity requirements and action-planning to quickly preserve value and address potential risks to stability.

With stabilization in place, broader restructuring plans are designed and executed, including activities that enable cost optimization, operational restructuring, improved cash and working capital management and asset / debt restructuring. In the case of (potential) bankruptcy, restructuring consultants work with shareholders, debtors, creditors, regulators and other insolvency stakeholders on executing the administration or bankruptcy process – the procedures differ per country.

Top consulting firms in Brazil for restructuring and turnaround

In Brazil, the bankruptcy law covers three main proceedings. The first proceeding (‘bankruptcy’) is the actual process of liquidating a company’s assets in order to pay off debts. This involves selling all property and goods to meet the debt’s requirements. The ‘court-ordered restructuring’ proceeding has been put into place to help the company restructure its debts while carrying on its day-to-day operations (only applicable for companies that have been in business for at least two years). The third bankruptcy proceeding, ‘extra-judicial restructuring’, involves a private negotiation between the debtor and the creditor. Restructuring and insolvency consultants typically team up with lawyers to mediate between the two parties – if however no consensus is reached, the judge takes over the process.

Top restructuring consulting firms

Brazil’s list of top consulting for restructuring and turnaround services includes three advisory players that operate globally. Alvarez & Marsal (A&M) is one of the most well-known names in the restructuring landscape, which it for a large part owes much for its key role on the Chapter 11 bankruptcy case of the collapsed banking giant Lehman Brothers. Globally, Alvarez & Marsal has over 3,000 professionals in 50+ offices, including a Latin American presence in Brazil (Rio de Janeiro) and Mexico (Mexico City). Rival FTI Consulting is with a headcount 4,700 employees worldwide larger than A&M. Both consultancies provide a range of management and economic consulting, financial advisory (corporate finance and restructuring) and technology advisory services.

KPMG is one of the Big Four accounting and consulting firms. Its Restructuring & Turnaround practice has over 1,200 professionals worldwide. The Brazilian team operates mainly from the firm’s national hubs in São Paulo, Rio de Janeiro, Recife, Brasília and Belo Horizonte.

Four of the industry’s top players are local Brazilian consultancies. G5 | Evercore is one of Brazil's largest independent financial advisory services firm, operating bases in São Paulo, Rio de Janeiro and Recife. Formerly known as Arion Capital, São Paulo-based Laplace Finanças provides a wide range of financial advisory services to private sector and private equity clients, including restructuring and turnaround. Pantalica Partners, also located in São Paulo, has completed more than 70 restructuring engagements in Brazil with a restructured debt value of over $25 billion since inception in 2014. RK Partners specialises exclusively on turnaround and crisis management offerings, and in recent years played a role in the turnaround of among others Bom Bril, Rossi, Bertin Energia and Property Brasil.

Completing the list of Brazil’s best consulting firms for restructuring and turnaround services are the advisory arms of three international investment banks. New York headquartered Moelis & Company was founded in 2007 and today employs over 750 employees in the Americas, Europe, the Middle East, Asia and Australasia. The company serves the Latin America region through its locales in São Paulo and Mexico City. Lazard and Rothschild rank among the globe’s most prestigious investment banks – they both provides financial advisory and asset management services to corporations, governments and non-profit institutions. Lazard was founded in 1848 in the US, while Rothschild – which is owned by the Rothschild family, one of the wealthiest families in modern world history – was established in 1838 and is currently headquartered in Paris, France.

Related: Consulting market of South America grows 4% to $2.6 billion.