Emerging Markets

Highland Brasilinvest Gestora de Recursos (“HBI”), a joint venture between affiliates of Highland Capital Management L.P. and Brasilinvest Group, pursues emerging markets credit strategies through a focus on Brazilian corporate debt.  Brasilinvest Group was founded in 1975 as the first private development agency in Brazil, and has completed over $4 billion in transactions.

• Expected to overtake Britain and France to be the world’s fifth largest economy by the end of this decade
• Brazil is at the front end of a favorable demographic and housing curve
• Rapid middle class expansion due to lowered unemployment and poverty rates, stemming from consistent monetary and fiscal policy and commodity price surges
• Increased middle class, coupled with stabilized interest rates and inflation, have fueled an increase in private consumption
• Surge in major infrastructure projects, in part due to hosting of 2014 World Cup and 2016 Summer Olympics

Brazil has a high interest rate environment with sustainable economic growth:

• To manage inflation and consequently, its currency value, the Brazilian government has maintained interest rates at high levels and has implemented surcharges on capital inflows
• HBI believes this high interest rate environment and sustainable economic growth will provide attractive risk adjusted returns over the intermediate term  

• Plural Capital, one of Brazil’s fastest growing investment banks
• Banco Pine, one of the most established mid-sized Brazilian banks
• Quata Investimentos, an experienced asset management company with a track record of originating credit-related assets in Brazil