Itaú Plans Dollar-Denominated P.E. Fund

Mar 21 2014 | 11:03am ET

Brazil’s Itaú Unibanco Holdings is set to expand its private-equity business.

Kinea Investimentos plans to launch is first dollar-denominated fund next year. The Brazilian real has been among the hardest-hit currencies recently.

“We are still using the money raised from our first fund, but we are planning for the next year to raise between US$500 million and US$700 million with a fund composed by Brazilian and international investors,” Kinea chief Cristiano Lauretti told The Wall Street Journal. “Right now, the exchange rate isn’t a concern for us, but after we raise this fund in dollars, we will have to start to take this into account.”

In the meantime, Lauretti said he is focused on investing the remainder of the 1.5 billion reais (US$727 million) Kinea raised for its first fund in 2007.

“The scenario of low economic growth concerns us and demands a creative approach,” he said. “We are looking for regions of the country with more growth than others, and I can say that now our targets for acquisitions are companies based in the center west and northeast.”


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...