EXCLUSIVE: Reag Investimentos buys Quasar Asset Management

Reag Investimentos, with R$163 billion under management and R$191 billion under administration, purchased 100% of the shares of Quasar Asset Management, an independent and multi-strategy resource manager, with an emphasis on fundamental analysis and a strong presence in credit. The investment aims to strengthen Reag in the asset management segment.

In the agreement, Reag adds, in addition to the assets under its Quasar management, around R$1 billion, its investment team of 20 professionals, who will reinforce the strategies of complex structured operations, including real estate funds, special situations and credit funds.

According to the manager, the purchase is part of a broader inorganic growth plan in 2024 to become a reference in resource management in two or three years. Reag Asset currently has around R$20 billion under management. Other specialized houses would be in the pipeline.

In parallel to this M&A, Reag hired Eduardo Barone as the asset’s commercial director. With more than 30 years of experience in the market, including stints at large financial institutions, such as BTG Pactual, Itaú Asset and Credit Suisse, and with a postgraduate degree from Stanford University, Barone will help in the manager’s growth movement.

“This is just the first move to strengthen our operations in the asset management area. To this end, we are not targeting volume, but companies with qualified teams that will contribute to the development of solutions that are as good or better than those we already offer today”, says João Carlos Mansur, CEO of Reag Investimentos

Although this is Reag’s first acquisition of a resource manager, this was not its first investment. In 2022 and 2023, the company acquired Rapier Investimentos, a wealth management house in Rio de Janeiro, and Quadrante Investimentos, an independent wealth management company, in São Paulo.

And since its founding in 2011, more than 10 operations have been carried out. Among them are BizHub Ventures, which belonged to Alvarez & Marsal and allowed entry into venture capital, and companies in the credit area, such as the financial company Qista; the Bom Pra Crédito credit marketplace; SOSBolso, created with a focus on consignment; and Condocash, aimed at residential and business condominiums.

Last year, Reag was at the center of a clash with GetNinjas. The manager led by Mansur was uncomfortable with the management of the company, which intended to return 80% of its cash to shareholders. For Reag, GetNinjas was missing market expansion opportunities. The manager acquired a relevant stake, mobilized minority shareholders and, in the end, managed to approve an OPA to take the services application private.

The consolidation movement among independent managers is just beginning. Study published by NeoFeed shows that houses with less than R$400 million under management have activated “survival mode”. According to TAG Investimentos, responsible for the survey, this is the minimum amount to cover the rental of a 150 m² slab in the Itaim Bibi region (Avenue Luiz Carlos Berrini was used as an example) with 15 professionals having a ROA (return on assets) of 1%.

Last week, MAG Investimentos, from the Aegon group, acquired the Somma Investimentos share fund and absorbed assets worth R$322 million for the variable income strategy. In total, MAG holds R$14 billion in Brazil. M&As between managers seem to be just beginning.