ABVCAP Event On Infrastructure Investment, Fund Governance

05/31/2006

Author:

Rio de Janeiro, Brasil
www.abvcap.com.br

Categories:
Infrastructure
Venture Capital

Article:
Meeting on Infrastructure Investment and Fund Governance Hightlights the Great Potential in Brazil´s PE/VC Market

June 6, 2006 -- On May 31, 2006, ABVCAP, the Brazilian Private Equity & Venture Capital Association, hosted a special meeting at the Rio Othon Palace in Rio de Janeiro. The event focused on infrastructure investments and private equity fund governance in Brazil. The meeting had 61 individuals present, including 16 representatives from pension funds and Brazilian fund managers.

The first three panelists spoke about infrastructure investments. Geoffrey Cleaver from Banco Real – ABN AMRO provided an overview of the infrastructure investments in Brazil. He said that in the past year R$ 8 billion has been invested in infrastructure. It is estimated that Brazil needs more that R$ 15 billion in infrastructure investment a year. Cassiano Leme from Darby-Stratus presented on his organizations’ use of Mezzanine funds to create attractive investment vehicles’ in Latin America. Fernando Quintella from AG Angra spoke about the attractiveness of infrastructure investment and his company’s experience with creating private equity infrastructure funds.

The second set of speakers focused on governance issues with private equity. Both Ricardo Malavazi Martins from PETROS pension funds and Ricardo C. Veirano from Veirano Lawyers explained the necessity of proper fund governance and highlighted basic components necessary for successful fund structuring. Marcelo Moraes, from Bradespar highlighted the advanced level of Brazil's governance, regulation, and infrastructure when compared to the other emerging markets.

In the following question and answering session, the soon to be president of ABVCAP, Marcus Regueira, was emphatic that two factors are impeding the international flow of PE/VC in Brazil: low economic growth and inadequate marketing. Álvaro Gonçalves, the acting president of ABVCAP, finished the meeting by asserting that Brazil has fund managers of the highest quality in technical and institutional capacity, more so that any other emerging market. The event demonstrated that Brazil is poised well to receive further foreign investment.

For additional information please contact: mazeredo@abvcap.com.br

ABVCAP - Associação Brasileira de Private Equity e Venture Capital
Av. Rio Branco, 123/sl.806
20040-005
Rio de Janeiro - RJ
Brasil
www.abvcap.com.br