Credit Suisse, Jive Investments Raise $145M For Brazilian Distressed Assets

Aug 4 2015 | 5:13pm ET

Credit Suisse and Jive Investments Holding have jointly raised the largest distressed asset fund in Brazil’s history as investors position to take advantage of opportunities in Latin America’s largest economy.

The approximatey $145 million vehicle, which is called Jive Investments, was raised primarily from Credit Suisse’s private-banking clients in Brazil. The fund plans on investing in distressed real estated, defaulted loans and other impaired assets, interest in which is exploding as Brazil enters recession and inflation remains stubbornly high despite more than two years of interest rate hikes.

Defaults on household loans are the highest pace in six years, according to PE Hub, while economists expect Brazil’s economy to shrink this year at the steepest pace since 1990. Moreove, falling sales and rising borrowing costs are forcing rising numbers of businesses to default on commercial loans and dispose of assets at low prices. 

Jive Investments raised capital through a restricted effort offering to fifty Brazilian clients of Credit Suisse, a mechanism that does not require direct registration with Brazilian regulators as long as only qualified investors participate and marketing efforts are restricted. 

Sao Paulo-based Jive Investments is Brazil’s largest independent buyer of distressed assets, managing approximately $57 million outside of the new fund. 

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