July 10, 2013
Interviewed by: David Snow
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Property, Agribusiness and Energy in Brazil

Julius Haupt Buchenrode of Global Equity says that international investors should keep an eye on the vast agriculture market in Brazil. He describes his firm’s aquaculture and agribusiness strategies, as well as his firm’s interest in the real estate market.

Julius Haupt Buchenrode of Global Equity says that international investors should keep an eye on the vast agriculture market in Brazil. He describes his firm’s aquaculture and agribusiness strategies, as well as his firm’s interest in the real estate market.

Property, Agribusiness and Energy in Brazil 

A Privcap Conversation With Julius Haupt Buchenrode of Global Equity

What sectors is your firm focused on?

We want to be very focused and we focus on real estate, agribusiness and energy. This is the expertise of our team, so that is where we want to focus. We developed a real estate fund that is going to do development, it is doing it already and we are going to do two more. We are going to do developments throughout the country with mid-sized developers, which are specialized in their regions. And this fund is diversified in terms of region, diversified in terms of developers we work with and diversified in terms of types of products – so that’s the idea of this fund. We have an agribusiness fund which does forestry developments in the north of Brazil which is part of recovering the Amazon Forest and part eucalyptus that will be sold to the paper industry.

Within real estate, what kinds of assets are you interested in?

The fund started with more residential and then we developed and diversified to commercial and now the big trend is mixed-use. When we are talking about mixed-use it is not only residential, commercial, but we also talking about hotels, malls, small malls, so this is a trend today. Obviously we still do residential only, commercial only, and the other new area that we are focusing on now is on the logistics side.

You’ve also invested in a fisheries company. Can you describe that opportunity?

Yes it is aquaculture fund, which is a development of a family that did the same idea in the poultry area. The idea is to replicate the same strategy in the fish area, so from raising the fish until selling that in the supermarket, as frozen fish. Everything is integrated. We now are bringing the institutional investors to that project through private equity fundraising of about 230 million reales for the development of that in the next 5 years.

Many international investors have taken an interest in the Brazilian agricultural sector. What should they know about the private equity opportunity in this vast market?

It is very important to have the knowledge of the areas where you are going to do develop because in Brazil, it is very important that you have all the documentation, know all the laws, regional laws. Everything must be very well known when you start to do business. Let’s take for instance the northeast. The northeast is a very difficult area to work with because they have their regional expertise and their regional laws. Their documentation is not so clean as in other areas so this is the expertise you have to have when you invest in Brazil. To know your Brazilian partners and that they know very well the area you are going to develop any projects.

What types of investors are you seeking to partner with?

I think it is important to say that we are in the business for the long term. This is what we tell our investors, we are now looking to diversify our client base to international investors and what we tell them is I don’t want them to invest in one fund with me, I want them to be partners in our projects from now on, so this is the message that I am giving out. I don’t want to sell one product, I want to sell the firm, I want to sell our strategy, I want to do business for the next 10-20 years. That’s the idea.

 

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