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How Stoicism and Seneca Inspired Brazil's Largest Independent Financial Advisory Firm

Writer's picture: Seneca Evercore | NotíciasSeneca Evercore | Notícias

(Valor Econômico) Co-founder of Seneca Evercore, Bahian economist Daniel Wainstein, forecasts a record volume of M&As this semester. Por Daniel Salles


Born four years before the Common Era, Seneca was a Spanish nobleman who rose to prominence in Rome. A man of letters, he wrote successful tragedies and was a passionate advocate of Stoicism—a philosophy that teaches true happiness stems from indifference to physical and moral suffering and acceptance of what fate imposes.


As a businessman, Seneca independently created a kind of private bank, amassing a fortune estimated at nearly 360 million sesterces—in euros, roughly the same figure. On the other hand, the philosopher praised detachment and frugality, even recommending that once a week one should sleep on the floor and eat only black bread.


One of Seneca’s most famous quotes, who lived until 65 CE, is: “It is not the man who has too little, but the man who craves more, that is poor. What is the proper limit to wealth? It is, first, to have what is necessary, and second, to have what is enough.”


Another well-known saying by Seneca is often repeated by Daniel Wainstein early in this “À Mesa com o Valor” interview: “Luck is what happens when preparation meets opportunity.” It’s a phrase, Wainstein says, that guides his work. “Fortuna, the goddess of luck, was depicted blindfolded because she arbitrarily determines what happens,” he explains. “What really matters? What you do with what’s in your hands.”


It’s no surprise that conversations with the economist often veer into philosophical territory. Fascinated by the subject, he named his financial advisory firm—specializing in mergers and acquisitions (M&As), restructurings, and capital markets—after the Spanish nobleman, opting for the Latin spelling. Enter Seneca Evercore, regarded as the largest independent firm of its kind in Brazil. Last year, it facilitated $2.7 billion in M&A transactions, according to Dealogic, a platform that tracks this sector. Second in the ranking was Rothschild, responsible for $1.8 billion, followed by Ernst & Young with $1.5 billion.


Another fan of philosophy is Rodrigo Mello—one of Seneca Evercore’s three senior partners, alongside Wainstein and Isaias Sznifer. “We greatly admire Stoic values, not only from Seneca but also from Epictetus and Marcus Aurelius,” he says, referencing two other thinkers who followed the same doctrine—the Turkish philosopher lived from 50 CE to 138 CE, and the Roman emperor from 121 CE to 180 CE. “They left behind principles that truly help us maintain a business we’re proud of.”


Mello goes on to share how he learned to better manage his own expectations by reading Aurelius’ work. “Expectation, according to Greek mythology, was one of the evils that escaped Pandora’s Box,” he adds. “Frustration is the result of an unfulfilled expectation.”

He also recalls Immanuel Kant’s (1724–1804) aversion to lies. “For the German philosopher, there was no justification for lying,” he summarizes. He brings this up to emphasize that his financial advisory firm doesn’t resort to falsehoods to get deals done. “We don’t accept it, not from anyone on our team,” he stresses. “Of course, we’re not obligated to share everything about our clients, for confidentiality reasons. But we only tell the truth. We don’t inflate valuations, for instance, or claim our clients have received offers that don’t exist. All of this contributes to our credibility, an important asset in this field.”


The firm occupies half a floor in a building on Faria Lima in São Paulo. For our lunch, Wainstein chose Freddy, a French restaurant just a few blocks away. “My daughters don’t think it’s one of São Paulo’s trendiest spots, so I rarely come here with family,” he says, justifying the choice. “But everyone agrees the food is very good.” Preceded by Seneca Evercore’s press officer, Wainstein arrives promptly at noon, the time the restaurant—open since 1935—starts service. This explains why we’re the only customers. By the end of our nearly two-hour lunch, few tables remain unoccupied.


Most are filled, within minutes, almost exclusively by men dressed similarly: black or dark blue dress pants, light-colored shirts with sleeves rolled above the wrist, and black leather shoes. Rodrigo Garcia, São Paulo’s former governor, was seated not far from us, at one of the tables furthest from the entrance. Wainstein, wearing a light gray shirt, navy suit, black leather shoes, and green-rimmed glasses, opted for a similar outfit.


“Do you have stroganoff today?” he asks the maître when the menus arrive. Receiving a positive reply, Wainstein quickly decides on the dish, abandoning plans to go for a lighter option. “I always come here convinced I’ll order something like sole with vegetables, but I end up changing my mind,” he admits. When the photographer’s dish—a filet chateaubriand with béarnaise sauce—arrives, Wainstein pauses to compliment the cut’s size. “At the end of the year, I did a two-week diet to gain back weight because I’d gone too far,” he exaggerates with a laugh.


Perhaps that explains why he barely touched the couvert, which included olives, pickles, raw carrots, carrot pâté, butter, Parmesan cheese, croissants, baguettes, and toast. To drink, he sticks to still water. When the stroganoff arrives—a portion for two shared with this reporter—he requests only “a little” potato sticks but takes just a few bites, focusing on the conversation instead.


Seneca Evercore is the evolution of the financial advisory firm Wainstein, Mello, and Sznifer founded in 2014. Initially affiliated with Greenhill & Co., an investment bank created by Robert F. Greenhill, a former president of Morgan Stanley, the firm became fully independent in 2020 when the partners bought out Greenhill’s stake and subsequently sold 20% to Evercore—adopting its current name. In practice, however, the firm has been operating as it is since 2014.


John Weinberg, CEO of Evercore, was a global leader at Goldman Sachs’ investment bank and vice chairman of the group. He was also Wainstein’s boss, making him the first and only Brazilian to become a Goldman partner. Wainstein led Goldman’s Brazilian investment banking operation from 2008 to 2013.


When Weinberg moved to Evercore, the opportunity arose for the firm to partner with Wainstein’s financial advisory company. Reflecting on the behind-the-scenes of the deal, Wainstein summarizes one of Epictetus’ teachings: focus on what you can control. “I couldn’t control Weinberg moving to Evercore,” he says. “But once he was there, I acted to build the partnership.” In this case, Seneca’s quote about luck and opportunity also applies.

Wainstein and Seneca Evercore’s other senior partners have known each other for years. He’s worked with Mello, a former managing director at Goldman Sachs, for 25 years.


“We’ve developed a fraternal friendship,” Wainstein says. “He’s more than a brother.” He also describes being very close to Sznifer, another Goldman alum. “I was his boss there,” he says, immediately regretting the phrasing. “Saying boss sounds bad,” he corrects himself. “We were colleagues.”


Luis Miraglia, who heads the fixed-income division launched this year, was a managing director at Morgan Stanley. He’s been friends with Wainstein since fourth grade.


What motivated the trio to venture out on their own in the world of financial advisory? Before answering, the economist notes that Goldman Sachs was an “excellent school.” “We dreamed of creating a company that wouldn’t force us to take on every opportunity that came our way,” he says. “Today, we even select clients based on ethical criteria. Before starting a new relationship, we talk with potential clients to understand their story and sense if their values align with ours. For example, we won’t work with someone who expects us to ‘dress up the bride’ to make them appear different from who they truly are.”

Reflecting on the decision to start their own business, he references a phrase attributed to the Spanish conquistador Hernán Cortés (1485–1547): “Burn the ships.” This phrase, allegedly spoken during the conquest of the Aztec Empire, was meant to show his men there was no turning back—Cortés was referring to the Spanish ships. “We also ‘burned our ships,’” Wainstein compares. “Our financial advisory firm had to succeed, but in the right way. Success for its own sake wasn’t enough. We started turning a profit in 2015. If I had known that in 2014, the beginning would have felt less daunting because the early months seemed like an eternity.”


He says that over the past ten years, none of the firm’s employees have resigned to join a competitor. This, he argues, is a sign they’ve created an environment that values their team—currently around 35 employees. “Every month, either Rodrigo, Isaias, or I sit down one-on-one with everyone—from other partners to interns—to ask how things are going,” he says. “If someone is struggling, we suggest taking some time off or adjust their workload.”

There’s no doubt that entrepreneurship has opened the door to a less stressful lifestyle. Otherwise, his youngest son, who was seven at the time of his departure from Goldman, wouldn’t have said shortly afterward, “You seem like a different dad.” That son is now 18 years old. The economist also has two daughters, aged 23 and 22, born from his marriage to art therapist Luciana Menossi, whom he started dating at the age of 17.


Most clients approach them because they’re interested in selling a portion of their companies, often to raise funds to drive business growth. Some companies hire Seneca Evercore to negotiate their debts with banks. Others come to Wainstein’s firm intending to sell their entire business—this is especially common in companies transitioning from one generation to the next. “Essentially, we advise on the best course of action,” the interviewee explains.


He adds that Seneca only takes on companies with the potential to attract investors or buyers. “We need to believe in the success of the operation being requested,” he explains. “Otherwise, it’s pointless because most of our revenue comes from that.” In negotiations, they usually sit across from major banks. “We’re not like a car dealership selling to people who don’t know much about cars,” he compares. “We typically negotiate with highly skilled professionals who conduct their analyses of our clients. We aim, of course, to maximize their gains, but ultimately, it has to be a good deal for everyone.”


Last year, the financial advisory firm worked on Magnetis’ acquisition by BTG Pactual. Brazil’s first “wealth tech,” Magnetis developed software that determines the ideal asset allocation for its clients based on individual goals and risk profiles. Also in 2023, Seneca advised the board of directors of Arco Educação during the process of taking the company private. Arco, which had been listed on the Nasdaq, was acquired by investment firms General Atlantic and Dragoneer for $14 per share, valuing the company at $1.5 billion.

In the same year, Wainstein and his partners helped the Puerto Rican fintech Evertec, specializing in electronic payment processing, acquire Brazilian software company Sinqia, whose shares were delisted from the B3 stock exchange. The deal closed at approximately R$2.5 billion. Another notable transaction involved Magazine Luiza, which turned to Seneca to sell its stake in its insurance business, LuizaSeg. Initially established in partnership with BNP Paribas Cardif, the latter acquired full ownership of the business with Wainstein’s assistance. Magazine Luiza expects to earn R$1 billion from the transaction.

In unfavorable economic conditions, Seneca Evercore typically advises clients to wait, as rushing could significantly reduce the numbers involved. This recommendation was frequently given in the first half of last year when many companies were still grappling with the aftermath of pandemic-related losses and the soaring Selic interest rate. “Many companies had taken on debts with interest rates of 2% or 3%, which rose to 13% while their revenue remained compromised,” the economist explains.


This doesn’t mean the advisory firm was idle during that period. It primarily facilitated recovery transactions, many of which were never publicly disclosed. “I’d say that during this time, such operations moved about R$30 billion in Brazil,” the interviewee estimates. These deals were understandably low-profile to avoid negative attention.


According to him, foreign investor interest in Brazil increased significantly from 2023 onward. Last year, credit rating agencies Fitch and S&P Global upgraded Brazil’s credit rating from BB- to BB. “We can expect further upgrades to these ratings this semester,” he predicts. “This is because the country’s economic outlook, for now, is very well-managed. Inflation is under control, interest rates are declining, growth is resuming—even surprisingly so—unemployment is low, and the fiscal balance promised by the federal government still appears to be a priority.”


He adds, “We can expect announcements of several large M&A deals this semester, potentially at record volumes. Consequently, IPOs should resume in the second half of the year.” He expresses concern, however, about comments like those made by President Luiz Inácio Lula da Silva regarding the Israel-Hamas conflict, in which the president accused the Israeli army of committing genocide in Gaza. “Under Bolsonaro, Brazil ended up on many foreign investors’ restricted lists due to his stance on democracy and environmental issues,” he recalls. Comparisons like Lula’s, he says, could place Brazil back on undesirable lists.


Wainstein viewed Lula’s statement as offensive both from an economist’s perspective and as a Jew. His paternal and maternal grandparents were Jewish refugees who fled Europe to escape antisemitism—one pair from Moldova and the other from Ukraine. They eventually settled in Salvador, where the economist was born 54 years ago. “Because of my features, many people think I’m a foreigner when they meet me,” admits Wainstein, who has retained little of his Salvadoran accent.


The son of a nutritionist and a civil engineer, he spent his childhood and teenage years in Barra, one of the most visited neighborhoods in Salvador. “I grew up flying kites and playing guitar at the Farol da Barra,” he recalls. “To be ‘cool’ in Salvador, you had to surf, practice capoeira, or play guitar. Since I could never do a cartwheel or stand up on a surfboard, I was left with music.”


In his late teens, he moved to São Paulo, determined to study medicine. But that changed after watching the movie The Secret of My Success (1987), starring Michael J. Fox, at Cine Bristol in Salvador with his parents. In the film, Fox plays a Kansas boy who moves to New York and becomes a successful executive. “I imagined the same could happen to me in São Paulo,” he admits, explaining his decision to study economics.


After earning his degree, he moved to the United States, where he began a PhD program at Brown University but left to pursue an MBA at the University of Rochester. Determined to work in finance, he joined Lehman Brothers in 1998. By the time the bank collapsed a decade later, he was already working at Goldman Sachs in its Brazilian office.


Goldman Sachs’ headquarters are in Manhattan. While he worked there and his wife was pregnant with their first child, the family lived in Jersey City, just across the Hudson River. Wainstein usually arrived at Goldman Sachs by 9 a.m., but one morning, he decided to leave home a little later because a deal he had been working on had fallen through the day before. His commute, by subway, included a stop at the World Trade Center station—whose towers were struck by planes between 8:46 and 9:03 a.m. on September 11, 2001. “We could see the Twin Towers from our home,” recalls the economist, who has never felt luckier than he did that morning.


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