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

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

Securities and Exchange Commission Chair Mary Jo White will step down as chair of the nation’s Wall Street overseer in January, setting the stage for a potential conservative shift in the regulator’s leadership under the incoming Donald Trump administration.