Private Equity Funds Boom - Investment in Brazil Ripe for Growth

MARBELLA, SPAIN November 24, 2010 (Washington Bangla Radio / 24-7PressRelease) The latest addition to the growing list of opportunities for investment in Brazil is private equity. Funds - mostly from foreign investment - are currently enjoying in boom in Latin America's largest economy.

Private equity investment in Brazil has reached high levels this year and well-known international fund managers are joining established local firms in the bid to make the most of what Brazil has to offer. And according to Ernst & Young, Brazil has plenty to offer the foreign investor.

In their report 'Private Equity in Brazil - ready for its moment in the sun', published last month, Ernst & Young present a very bullish picture of Brazil for the private equity investor. The report finds that Brazil is enjoying increasingly popular status among investors, mainly because of its strong economic position, robust growth forecasts and Brazil's increasing transparency in doing business.

The economic figures for Brazil published in the report are impressive - Brazil's long-term economic growth rate is projected to average 4.1% a year between now and 2040. This is almost twice the rate expected in the US (2.5%) and well over double the rate forecast for the EU (1.9%). For Ernst & Young, "the size of Brazil's economy exceeds its BRIC compatriots India and Russia by a considerable margin".

Brazil's excellent economic record - this is a country that dipped only briefly into recession before surging ahead into strong growth - has made the country a favourite for foreign investment. According to the report, "Brazil has engineered the right conditions for continued long-term growth" and as a result, can expect high foreign direct investment annually. The US$38 billion foreign investment in Brazil this year amounts to more than 3% of the global total. In terms of investment, Brazil is behind only China among emerging markets.

Ernst & Young are bullish too about the prospects for investment in Brazil over the next few years. The report states that "the increase in transparency, reliability and comparability is likely to draw even more foreign investors in the coming years", particularly as Brazil continues to offer high returns on investment. Ernst & Young conclude that "Brazil is ripe with new drivers for growth".


When it comes to investment, Brazil is ticking all the boxes - whether it's private equity, commodities or real estate - but Ernst & Young caution that Brazil is still an emerging market. Doing business is far from easy for the newcomer and extensive local knowledge is essential if the investment in Brazil is to be a success. The report states that "working with advisors that are familiar with the workings of the market is crucial". Choosing partners carefully and ensuring they are familiar with local business practice and customs is vital to realise the investment's full potential.

At Obelisk, we are well aware of the importance of working with established and reputable companies in the areas where we source investments. We value local expertise highly and consider it an essential part of investment in Brazil. These partnerships ensure we can offer exceptionally high returns and utilise Brazil's potential to the maximum. Like Ernst & Young, Obelisk also believes Brazil is "ready for its moment in the sun".

Obelisk offers select investment opportunities in Brazil and gives investors security, profitability and diversity thanks to a combination of close attention to our clients' investment requirements and high quality in-house research and analysis.

For more information on investment in Brazil and to find out about Obelisk's latest projects there, contact 0034 952 820 319. Via email: info@obeliskinternational.com or visit website: http://www.obeliskinternational.com.

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