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Fosun acquires Latin American company Rio Bravo Investimentos

( Updated: 2016-07-31 13:51

The Fosun Group, a major China-based investment group, with operations in several countries, signed Saturday an agreement to acquire Rio Bravo Investimentos.

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.

The acquisition is part of Fosun's growth strategy in emerging countries and aims to expand the group's businesses in Latin America.

The agreement signed is an important step for Fosun in its international expansion and allows the group to establish its presence in Brazil and in the larger Latin American region.

By joining forces with the partnership and management that has guided successfully Rio Bravo in the last 16 years, Fosun expects to fully take advantage of the exceptional period of change and economic renewal that is taking place not only in Brazil but also in neighboring economies.

With the acquisition, Rio Bravo will be part of Fosun's global network. Current Rio Bravo products and business portfolio will be preserved and will expand to new operational lines according to opportunities and synergies with other international platforms of Fosun Group.

Furthermore, the integration of a strong investment base like Rio Bravo with Fosun global capabilities, especially with global landscape and professional investment and management capabilities of Fosun Property, provide a true investment gateway from and to the Latin America region.

As a sign of its commitment to the Brazil and Latin American market, and taking into account Rio Bravo's strong multi asset class investment capabilities, Fosun will provide strong financial support to opportunities in the region, covering real estate, fixed income, public equity and private equity investments.

Guo Guangchang, Chairman of Fosun, said: "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. 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."

Mario Fleck, director of the Rio Bravo, 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."

"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", added Mario Fleck.

The Rio Bravo Investimentos Group started its activities in 2000 and is a leader in the Brazilian market in the management of real estate funds, also working in private equity, equity funds, credit funds, infrastructure funds, financial consulting and multi-class portfolio management asset.

The closing and implementation of the acquisition of the transaction should happen as soon as certain conditions set out in the contract signed between the parties are fulfilled.

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