For decades, investing in Brazil was certainly not high on an investor’s priority list, and many investors withdrew their money from the country in 2013, but there’s been a swift turnaround. Interest in Brazil as an investment destination has been re-awakened. Today, opportunity-oriented investors are on full throttle following in the footsteps of car makers, GM and Volkswagen.
VW infused more than 9 billion dollars into Brazil to produce their new Golf, illustrating the trust the car maker has in the country. Of course, it’s a win-win for Volkswagen too since they bypass 30 percent duty on imported cars and can benefit from additional tax advantages. This had made Brazil the fourth largest car market in the world. And VW is not the only car maker producing there. BMW, Mercedes-Benz, Fiat, and GM are just a few with Brazilian car production plants.
Widespread investment opportunities in Brazil aren’t news to Zeca Oliveira, president of Bridge Trust Administration. He says Brazil has long been a country of foreign investors. Oliveira most recent triumph radically transformed the investment landscape, by turning $900 million in funds into $2.5 billion in assets. Zeca Oliveira’s ascent wasn’t rapid; he’s been using inherent money management smarts for 27 years, and now has a well-deserved and impressive reputation in fund management.
Oliveira has this broad-ranging vision of when investments and partnerships make sense. Often companies are able to achieve greater levels of efficiency together, while snagging more opportunities, which is why Zeca Oliveira is joining forces with Fernanda Lima. Bridge Trust Administration (BRL) is merging with Gradual Investments, a major brokerage firm, worth over $4 billion in assets. By joining forces, the businesses are able to exploit what Zeca Oliveira calls a synergic effect, meaning the partnership is stronger and maximizes opportunities for their clients.
Undoubtedly, Brazil has become a rising economic power, currently ranked 4th in the world, only behind China, the US and India. As a supplier of raw materials to the Far East, Brazilian companies have become very successful, and since the country has made new investments in its infrastructure, especially for the 2014 World Cup, the attractiveness of South American opportunities have sparked new interest.
Oliveira points out that Brazil has a number of characteristics that differentiate it from other markets. The abundance of natural resources and cultivated land, and also one of the largest producers of iron, tin, and bauxite has helped make Brazil a leading market. The country is globally the second-largest iron ore producer, and eighth major steel producer, and the third largest manufacturer of aircraft, and the fourth largest automobile producer, and let’s not forget they have the largest offshore deposits worldwide.
Despite the prior years of economic problems, Brazil has emerged with balanced and sustainable growth, making it a center of attention for foreign investors, and has become a model for economic recovery.