{"id":652554,"date":"2013-04-15T21:30:58","date_gmt":"2013-04-16T01:30:58","guid":{"rendered":"http:\/\/www.pehub.com\/?p=196502"},"modified":"2013-04-15T21:30:58","modified_gmt":"2013-04-16T01:30:58","slug":"reuters-brazil-buyout-sector-seeks-investment-from-insurers-pension-funds","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/652554","title":{"rendered":"Reuters \u2014 Brazil Buyout Sector Seeks Investment from Insurers, Pension Funds"},"content":{"rendered":"

(Reuters) – Brazilian private equity funds are pushing ahead with a plan to win investment commitments from insurers and pension funds that are seeking higher returns on over 1.1 trillion reais (about $550 billion) of money under management.<\/p>\n

ABVCAP, as the group representing private equity funds is\u00a0known, is engaging insurance and pension fund industry regulator\u00a0Susep in talks to ease caps on investments other than\u00a0fixed-income securities, said Clovis Meurer, ABVCAP’s president.<\/p>\n

Talks with money managers are also underway, he said, adding\u00a0that the goal is to get pension funds and insurance companies to
\nfunnel up to 15 percent of their investment pool into equities\u00a0and other alternative investments. A small portion of that could\u00a0go to private equity and venture capital investments, he added.<\/p>\n

“You could have a little over 100 billion reais flowing into\u00a0equities and, as a result, being spilt over to private equity\u00a0and venture capital,” Meurer said at a news conference at\u00a0ABVCAP’s annual summit in Sao Paulo. “This could be a win-win\u00a0situation for the market.”<\/p>\n

The move underpins the growing importance of private equity\u00a0funds as a source for business in Latin America’s largest\u00a0economy. Buyout firms have fueled mergers and acquisitions and\u00a0advisory activity in the past two years, and have responded to\u00a0this year’s only two initial public offerings.<\/p>\n

Traditional investors like pension funds are also struggling\u00a0to attain minimal return thresholds as interest rates fell to\u00a0record lows. ABVCAP’s Meurer also expects the drive to lure\u00a0insurance and pension fund money to help bolster the 80 billion\u00a0reais in the stock of capital committed by the private equity\u00a0industry.<\/p>\n

According to Luiz Eugenio Figueiredo, a board member for\u00a0ABVCAP, capital committed by buyout firms rose from 63 billion\u00a0reais in 2011.<\/p>\n

Exits, or the way funds profit on their investments by\u00a0selling companies to other investors, almost doubled to 6\u00a0billion reais last year from 3.6 billion reais in 2011.<\/p>\n

(One real is equal to $0.4999, according to Yahoo’s currency converter<\/a>.)<\/p>\n

By Guillermo Parra-Bernal, Reuters<\/em><\/p>\n

The post Reuters — Brazil Buyout Sector Seeks Investment from Insurers, Pension Funds<\/a> appeared first on peHUB<\/a>.<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) – Brazilian private equity funds are pushing ahead with a plan to win investment commitments from insurers and pension funds that are seeking higher returns on over 1.1 trillion reais (about $550 billion) of money under management. ABVCAP, as the group representing private equity funds is\u00a0known, is engaging insurance and pension fund industry regulator\u00a0Susep […]<\/p>\n","protected":false},"author":7428,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-652554","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/652554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/7428"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=652554"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/652554\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=652554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=652554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=652554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}