China’s Fosun buys Brazilian fund manager
Fosun Group has agreed to buy Brazilian fund manager Rio Bravo Investimentos, the Chinese conglomerate announced on Saturday.
This is the first equity acquisition by Fosun Group in Latin America, and an important step on further carrying out the strategy of leveraging the strong local investment capabilities, after its acquisition of IDERA Capital in Japan in 2014, Resolution Property in UK in 2015, and incubation of Fosun Eurasia in Russia in 2015.
Fosun did not disclose the value of the deal but said the acquisition is part of the company’s growth strategy in emerging countries and aims to expand the group’s businesses in Latin America.
China’s biggest private conglomerate expects to take advantage of the “exceptional period of change and economic renewal” taking place not only in Brazil but also in neighboring economies, it said.
Sao Paulo-based Rio Bravo manages $3bn of clients’ money in liquid funds, real estate and private equity investments. Its three main partners include former Brazilian central bank president Gustavo Franco, Paulo Bylik and Mario Fleck.
“Brazil is geographically a conduit linking Latin America and Asia. With its own distinctive economic characteristics and large size, Brazil has a strong influence in the region,” Guo Guangchang, chairman of Fosun, said.
“Beyond the expansion in Latin America, the association with the Fosun Group is an opportunity to offer our institutional and individual clients in Brazil a greater spectrum of financial products while opening new regions for investments,” said Mario Fleck, director of Rio Bravo.
“In the new cycle of Brazil and the region, the role of international capital in tandem with local capital will be critical for investment success,” Fleck said.