Sovereign Wealth Fund Latest Investment in Brazil
Brazil’s status as a prime investment destination continues to grow. Hot on the heels of private equity funds entering Brazil comes the news of the arrival of the first large sovereign wealth fund investment.
Brazil has just received sovereign wealth funds amounting to US$1.8 billion. The funds – the first of this level of investment in Brazil – have gone into BTG Pactual, an independent Brazilian investment bank. The US$1.8 billion comes from a consortium of nine funds, including GIC from Singapore, the Chinese CIC and the Abu Dhabi Investment Council.
These are the world’s three largest funds and the fact that they have chosen to go into Latin America’s largest country is an indication of the growing status of Brazil as an investment destination. For Andre Esteves, the Chief Executive of BTG Pactual, the injection of these sovereign wealth funds into Brazil is “a sign of a new financial order”.
Sovereign wealth funds are increasingly moving away from established economies to the new emerging markets such as the BRIC nations (Brazil, Russia, India and China) where investment opportunities are wider and returns higher than traditional markets.
Until recently, Brazil had not been a focal point for this type of funds. But as the Brazilian economy grows and Brazil’s standing on the world economic platform rises, more and more fund managers are looking to this huge country for their next move.
The latest deal with BTG Pactual will look to expand across Brazil and Latin America, which along with Asia is one of the world’s hottest investment spots. Strong economic growth makes Latin America an attractive proposition. Figures just released from the United Nations (UN) Economic Commission for Latin America and the Caribbean point to 4.2% GDP growth for the region as a whole in 2011.
Individual country figures are even better. For the UN, Brazil’s economy will be posting 7.7% growth this year – the highest in Latin America – to be followed by 4.6% in 2011. Chile and Peru also look more than promising for next year with a forecast of 6%.
As world economic dynamics change, shifting away from developed nations to the new emerging economies, Brazil is gradually moving to the forefront of favoured investment destinations. Obelisk International has noticed the gradual evolution from small investment amounts to some of the largest fund movements. 2010 has undoubtedly been an excellent year for Brazilian investments from private equity to real estate. The arrival of serious sovereign wealth funds suggests to Obelisk International that 2011 will be an even better time to invest in Brazil.
And we echo the words of Huw Jenkins, a partner at BTG Pactual when he points out that “we have to take advantage of this period when Brazil is clearly at the centre of a global investment re-rating”.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Brazil has just received sovereign wealth funds amounting to US$1.8 billion. The funds – the first of this level of investment in Brazil – have gone into BTG Pactual, an independent Brazilian investment bank. The US$1.8 billion comes from a consortium of nine funds, including GIC from Singapore, the Chinese CIC and the Abu Dhabi Investment Council.
These are the world’s three largest funds and the fact that they have chosen to go into Latin America’s largest country is an indication of the growing status of Brazil as an investment destination. For Andre Esteves, the Chief Executive of BTG Pactual, the injection of these sovereign wealth funds into Brazil is “a sign of a new financial order”.
Sovereign wealth funds are increasingly moving away from established economies to the new emerging markets such as the BRIC nations (Brazil, Russia, India and China) where investment opportunities are wider and returns higher than traditional markets.
Until recently, Brazil had not been a focal point for this type of funds. But as the Brazilian economy grows and Brazil’s standing on the world economic platform rises, more and more fund managers are looking to this huge country for their next move.
The latest deal with BTG Pactual will look to expand across Brazil and Latin America, which along with Asia is one of the world’s hottest investment spots. Strong economic growth makes Latin America an attractive proposition. Figures just released from the United Nations (UN) Economic Commission for Latin America and the Caribbean point to 4.2% GDP growth for the region as a whole in 2011.
Individual country figures are even better. For the UN, Brazil’s economy will be posting 7.7% growth this year – the highest in Latin America – to be followed by 4.6% in 2011. Chile and Peru also look more than promising for next year with a forecast of 6%.
As world economic dynamics change, shifting away from developed nations to the new emerging economies, Brazil is gradually moving to the forefront of favoured investment destinations. Obelisk International has noticed the gradual evolution from small investment amounts to some of the largest fund movements. 2010 has undoubtedly been an excellent year for Brazilian investments from private equity to real estate. The arrival of serious sovereign wealth funds suggests to Obelisk International that 2011 will be an even better time to invest in Brazil.
And we echo the words of Huw Jenkins, a partner at BTG Pactual when he points out that “we have to take advantage of this period when Brazil is clearly at the centre of a global investment re-rating”.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Labels: Brazil, Brazil investment, Brazil property investment, Brazilian real estate, investment in Brazil
posted by Alison Kane at 4:02 pm
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