UPDATE 2-BTG Pactual evaluates options for flagship GEMM fund - source
(Adds redemption deadline extened to Jan. 29, details on assets)
By Steve Slater
LONDON Dec 14 (Reuters) - Embattled Brazilian bank Grupo BTG Pactual SA is evaluating options for its flagship global emerging markets and macro (GEMM) fund following the arrest of the bank's founder, a person familiar with the matter said on Monday.
BTG Pactual is writing to GEMM investors and will extend a deadline for redemption notices by six weeks to Jan. 29 "to give all investors adequate time to understand the strategic options being evaluated", the source said.
The deadline for March 1 redemptions had been previously set as Dec. 16.
A sale or management buy-out are among the options being considered for the fund, industry sources said.
Sao Paulo-based BTG Pactual is considering selling assets after its billionaire founder André Esteves was arrested last month in connection with a corruption investigation in Brazil.
BTG Pactual's global hedge funds had 26.6 billion Brazilian reais ($6.9 billion) under management at the end of September, according to a recent presentation by the bank.
GEMM is its biggest hedge fund and had assets under management of $4.1 billion at the end of October, the source said. Continuación...