J.P. Morgan’s Big Investment in Brazil
Foreign investment in Brazil continues full steam ahead. The latest addition to the investor list is J.P. Morgan who has just bought Gávea, one of Brazil’s largest hedge funds.
This acquisition is one of many this year as the world’s banks and funds turn their attention from the jaded traditional markets to the bright lights of emerging markets. Brazil with its stable democracy, steady economy and huge potential is one of the biggest attractions for financial investment. And the fact that the banking system has rock solid foundations is seen as a huge advantage by foreign financiers looking to invest in Brazil.
Gávea, based in Rio de Janeiro, is one of the biggest hedge funds in Brazil with an extensive portfolio that encompasses US$2 billion in its global fund and US$2.5 billion in private equity business. Investments in the private equity portfolio include around 25 companies in Brazil.
Leading Gávea is one of Brazil’s financial gurus, Arminio Fraga. His curriculum vitae makes impressive reading. When he was governor of Brazil’s central bank, Mr Fraga was one of the engineers of the inflation-targeting system. The system, still used by Brazil today, has been hugely successful in keeping inflation in check and therefore ensuring the economy can grow steadily. Mr Fraga is currently chairman of Brazil’s stock exchange, Bovespa, one of the fastest growing in the world and consistent producer of high investment returns.
Mr Fraga will remain at the top of Gávea and oversee the company’s incorporation into J.P. Morgan’s asset management group, which has over US$20 billion under management. For J.P. Morgan, this major move into Brazil will ensure the company continues to strive for excellence. Chief Executive of J.P. Morgan Asset Management, Mary Callahan Erdoes said “It isn’t important to J.P. Morgan to be the world’s biggest asset management but to be the best”.
J.P. Morgan is busy expanding its Brazilian Investments. The global financial services giant has increased its staff in Brazil from 300 employees to 500 this year and according to sources quoted by the Financial Times, this figure is set to reach 1,500 over the next couple of years. J.P. Morgan is extremely bullish on Brazil – the manager of the company’s Brazil investment trust recently said that “Brazil’s economic potential, fiscal soundness of its banks and cheap-stock valuations have turned Brazil into the ‘poster child’ for emerging markets”.
This year has seen a sharp rise in foreign presence in the financial market in Brazil. UBS joined forces with Pactual, a Brazilian investment bank and Blackstone acquired 40% of Pátria, one of the largest wealth management funds in Brazil. Other private equity firms are also flocking to Latin America’s largest country to take advantage of the excellent investment opportunities in Brazil.
The market research team at Obelisk has noticed a definite surge in interest in Brazil this year as more investors recognise the huge potential available throughout this huge country. As this potential develops into solid returns – and Brazil offers some of the highest investment returns around – interest will undoubtedly grow even higher.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
This acquisition is one of many this year as the world’s banks and funds turn their attention from the jaded traditional markets to the bright lights of emerging markets. Brazil with its stable democracy, steady economy and huge potential is one of the biggest attractions for financial investment. And the fact that the banking system has rock solid foundations is seen as a huge advantage by foreign financiers looking to invest in Brazil.
Gávea, based in Rio de Janeiro, is one of the biggest hedge funds in Brazil with an extensive portfolio that encompasses US$2 billion in its global fund and US$2.5 billion in private equity business. Investments in the private equity portfolio include around 25 companies in Brazil.
Leading Gávea is one of Brazil’s financial gurus, Arminio Fraga. His curriculum vitae makes impressive reading. When he was governor of Brazil’s central bank, Mr Fraga was one of the engineers of the inflation-targeting system. The system, still used by Brazil today, has been hugely successful in keeping inflation in check and therefore ensuring the economy can grow steadily. Mr Fraga is currently chairman of Brazil’s stock exchange, Bovespa, one of the fastest growing in the world and consistent producer of high investment returns.
Mr Fraga will remain at the top of Gávea and oversee the company’s incorporation into J.P. Morgan’s asset management group, which has over US$20 billion under management. For J.P. Morgan, this major move into Brazil will ensure the company continues to strive for excellence. Chief Executive of J.P. Morgan Asset Management, Mary Callahan Erdoes said “It isn’t important to J.P. Morgan to be the world’s biggest asset management but to be the best”.
J.P. Morgan is busy expanding its Brazilian Investments. The global financial services giant has increased its staff in Brazil from 300 employees to 500 this year and according to sources quoted by the Financial Times, this figure is set to reach 1,500 over the next couple of years. J.P. Morgan is extremely bullish on Brazil – the manager of the company’s Brazil investment trust recently said that “Brazil’s economic potential, fiscal soundness of its banks and cheap-stock valuations have turned Brazil into the ‘poster child’ for emerging markets”.
This year has seen a sharp rise in foreign presence in the financial market in Brazil. UBS joined forces with Pactual, a Brazilian investment bank and Blackstone acquired 40% of Pátria, one of the largest wealth management funds in Brazil. Other private equity firms are also flocking to Latin America’s largest country to take advantage of the excellent investment opportunities in Brazil.
The market research team at Obelisk has noticed a definite surge in interest in Brazil this year as more investors recognise the huge potential available throughout this huge country. As this potential develops into solid returns – and Brazil offers some of the highest investment returns around – interest will undoubtedly grow even higher.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Labels: Brazil, Brazil property investment, Brazilian middle classes, Brazilian real estate, investment in Brazil, MCMV, middle classes in Brazil, Minha Casa Minha Vida
posted by Alison Kane at 1:46 pm
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