Examining the concept of clientelism in analysis of participatory processes, we investigate how collective and individual action are articulated in practices in the case of participatory budgeting (PB) in Recife, Brazil. We use ethnographic work to look how collective actors mobilize within the PB process in Recife and show that PB's territorial and redistributive nature provides fertile ground for informal exchanges to be entrenched in institutional processes at the micro level. Microsocial interactions between political entrepreneurs, intermediaries, and ordinary participants in Recife participatory practice are shaped by two processes: individualization of political loyalties and territorialization of politics. These, we argue, allow informal exchanges to coexist with institutionalized forms of collective action. PB presupposes that participants engage in local struggles and introduces competition and inequalities among them, as access to resources is conditioned by their ability to mobilize and enter into informal interactions that underlie political exchanges within PB.