(Bloomberg) October 31, 2011 – BRZ Investimentos Ltda., the Brazilian asset manager spun off from GP Investments Ltd. in 2006, plans to raise at least 650 million reais ($388M) for two funds, Chief Executive Officer Allan Hadid said.

The firm, with about 3.6 billion reais under management, plans to start a second private-equity fund of at least 500 million reais to invest in ports, highways, storage and cargo transportation, Hadid said in an interview. The Sao Paulo-based BRZ is also in talks with investors for a fund of at least 150 million reais dedicated to asset-backed securities, he said.

The funds will meet demand for infrastructure assets and protection against inflation. Consumer prices in Latin America’s biggest economy rose 7.12 percent in the 12 months through mid- October, above the central bank’s target of 4.5 percent.

“My investor is concerned with inflation,” Hadid said about the loan portfolio-backed fund BRZ is planning. He said he expects consumer prices to decrease to 5.6 percent next year.

BRZ’s existing asset-backed securities fund of about 150 million reais targets a 9 percent return on top of Brazil’s benchmark consumer-price index, or IPCA, Hadid said in the Oct. 25 interview. The assets backing the securities are consumer loans portfolios, he said.

BRZ has an infrastructure private-equity fund of about 500 million reais invested in companies including ALL America Latina Logistica SA’s Brado Logistica unit, according to its portfolio statement posted at Brazil’s securities regulator website. The fund, which started operating in 2006, targets returns above IPCA plus 9.5 percent, according to its rules.

The firm, which has 54 employees including 12 partners, also manages equity funds, in addition to fixed-income and private-equity funds, Hadid said. GP, Latin America’s largest private-equity company, has a 65 percent stake in BRZ.

By Francisco Marcelino and Adriana Arai