(Reuters) June 11, 2010 – BTG Pactual, a Brazilian securities firm, is raising at least $1 billion by selling stakes in two private equity funds to investors, Valor Economico newspaper reported on Friday, citing no sources for the information.

BTG Pactual, controlled by billionaire Andre Esteves, has been meeting investors abroad to pitch the funds, most recently in the Middle East, the daily said.

One of the funds would look for takeovers in the health industry, while the other could have $1 billion to invest in undisclosed sectors, Valor reported.

BTG Pactual started in the private equity business in 2008 with funds from its partners, buying stakes in seven different companies, including 50 percent of parking garage operator Estapar and 100 percent of drugstore chain Farmais, Valor said.

The bank has filed with Brazil’s securities regulator to launch two private equity funds in the country, one called “Real Economy” and the other “Health,” Valor said.

A BTG Pactual spokeswoman declined to comment on the funds to Reuters.

By Elzio Barreto