The Fosun Group, the Shanghai-headquartered Chinese investment conglomerate, has agreed to acquire Rio Bravo Investimentos, a Sao Paulo-based Brazilian investment management firm. The deal marks the group’s entry into the Latin American property market.
Fosun did not disclose the value of the deal.
Rio Bravo manages R$10 billion (€2.75 billion; $3 billion) of third-party capital across different asset classes, including real estate, private equity, public equity, infrastructure, and credit funds.
In a statement announcing the acquisition, Fosun said the deal would enable it to take “take advantage of the exceptional period of change and economic renewal that is taking place not only in Brazil but also in neighboring economies.”
“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,” added Guo Guangchang, chairman of Fosun. “We are very pleased to announce the acquisition of Rio Bravo, marking an important milestone for the laying out of Fosun’s globalization strategy of being present in the important emerging economies linking investment opportunities with capital in a global context while maintaining always the local knowledge that comes with strong and well established management.”
Under Fosun’s ownership, Rio Bravo’s business portfolio and products would be reserved and also expanded to new operational lines according to opportunities and synergies with the other international platforms of Fosun, according to the statement.
Rio Bravo Investimentos Group started its operations in the year 2000. Speaking of the investment potential in Brazil, Mario Fleck, director of the firm, said that “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”
Over the years, Fosun has been aggressively expanding its global property footprint via single-asset deals and acquisition of property platforms. Fosun’s foray into Latin America comes a year after the firm made its first platform buy in Europe with the acquisition of a majority stake in Resolution Property, the London-based private equity real estate firm. Until this deal, the firm did not own any asset management platform outside Asia. Resolution Property now acts as Fosun’s main real estate investment manager pursuing value-add opportunities across Europe. In October last year, the group also announced the launch of Fosun Eurasia Capital, its maiden asset management advisory and investment business in Russia.