Verde Asset has just launched its first FIDC. The first allocations are being made with its own capital, but the manager has also started to raise funds from the market and intends to reach a net worth of R$1 billion within 18 months.
Until now, all of the house’s credit investments were spread across multimarket funds, with around R$4.5 billion already invested since 2013. With the FIDC, called Verde Ipê, the manager now has a strategy specifically aimed at this segment , built by partner Luiz Parreiras and led on a day-to-day basis by Carlos Reis.
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“The new fund is a confluence of efforts that we have been developing for a decade. We think we have reached maturity to have this new line of business”, says Parreiras to Pipeline. He states that the decision was made almost a year ago, but that the manager spent time “at the drawing board” to adapt the strategy to the regulatory changes that the fund market has undergone since then, such as CVM resolution 175, for example.
The investment in the credit market is also due to the perception that interest rates in Brazil will remain high in the long term, which creates good opportunities for high returns with controlled risk.
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“Given our government’s model, of an economy with a looser fiscal policy that demands a tighter monetary policy, we think that Brazil will have difficulty returning to interest levels below 6% or 7%,” he says. “And even if the government changes, there is a global context of higher structural interest rates, and we also know that fiscal irresponsibility is not a privilege of the left.”
Regarding the allocation of capital, Parreiras explains that Verde wants to avoid the two extremes of the credit market, segments that already have high competition. On the one hand, there is the slice that banks usually explore, with low risk and low return. On the other, there is the high risk and high return group, such as special situations operations.
“Between these two, there is the rest of Brazil. It was in this middle of the road where we developed our expertise and where there is a more interesting risk-return equation”, says Parreiras. According to him, based on the history of Verde’s credit allocations, the fund’s potential is to obtain annual returns of CDI+4% or CDI+5%.
Regarding the fintech models that can receive capital from the FIDC, Verde states that it is open to all types of credit, but will favor businesses that fish in a closed aquarium, as it does with Movile Pay, a fintech from Movile, owner of Ifood , which provides credit to restaurants that are in the delivery app ecosystem. “As there are many restaurants, financing is spread out. If there is a problem with one, it does not impact the whole”, says Carlos Reis.
