Brazilian alternative-asset manager Vinci Partners Investments is seeking acquisitions in the Latin American region as hedge funds struggle with outflows, reported Bloomberg News.
The firm, which went public in the US last year, is said to have about BRL1.4bn in net cash to fund acquisitions and offer seed money to new funds.
Vinci Partners Investments CEO Alessandro Horta told the news agency in an interview: “The industry in Brazil and Latin America is highly volatile because of global turbulence. The upheaval creates opportunities for takeovers.”
In Latin America, the investors are said to choose Treasury bonds and fixed-income funds over riskier investments owing to the increasing turbulence in the US equity markets and rising interest rates globally.
Vinci, which provides longer-term funds with lock-ups, is set to take advantage of the changing market realities.
Horta said: “Although the industry is suffering, we have a more resilient model and even the more liquid ones had only tiny outflows.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
He also added that the firm can be patient in its search for acquisition candidates, and nothing is likely in the short term.
Meanwhile, some of Vinci’s peers have already made their move. Recently, Brazilian distressed asset manager Jive Investments agreed to combine with investment firm Maua Capital.
Last December, Patria Investments took over Chile-based Moneda Asset Management, establishing a $25bn firm with investments including private equity, infrastructure and credit funds.
This January, a report by Bloomberg said that Goldman Sachs is planning to beef up its workforce in Latin America with a focus on ‘equity capital markets’.