The Company’s Treasury Sales & Structuring area carries out the prospection, structuring and execution of risk management operations for its corporate and institutional clients in different interest, currency and commodity markets, as well as providing exchange closing services and provision of guarantee and the sale of the group’s fundraising products.It is worth emphasizing that the Company does not have a proprietary trading desk, reinforcing its conservative position and focusing solely on offering differentiated financial solutions to its customers.

Differentials in the Treasury Sales & Structuring area:

• Team with strong experience in structuring and risk management in fixed income, foreign exchange and derivatives.
• Market intelligence with local and international access.
• Agility in structuring financial solutions with a market view and competitive prices.
• Trading activities always focused on customer service, without proprietary positions.

The Treasury Sales & Structuring area offers the following products:

• Multi-product platform in different FX, interest, commodities and fixed income markets.
• Derivative products: Futures, swaps, forwards and options.
• Exchange: spot operations and future settlement of currencies.
• Asset and Liability Management
• Fixed income: funding products (CDBs, CDIs, Letras Financeiras, LCIs) and operations in the secondary market for government bonds, debentures and securitizations (FIDCs, CRIs, etc.).
• Bank guarantees.

The Investments area manages and invests proprietary capital of the Company and third parties in illiquid equity funds related to the theses developed by BR Partners Gestão de Recursos Ltda., an asset manager controlled by the Company (“BR Partners Gestora”). The investments made by the Investments area generate recurring revenues from management fees, occasional income from performance fees, which are paid when the funds are disinvested, and capital gain on the proprietary investment.

The Company mainly carries out minority investments in privately-held small and medium-sized companies through privately negotiated operations and structures vehicles dedicated to specific strategies, allowing investors to invest capital exclusively in investment theses that they believe will generate more value. More than 80% of the financial resources in equity investment funds under management were raised with third parties, enabling the Company to offer its customers a differentiated product that is rarely available to Brazilian investors. On the other hand, investors are committed to keep the capital invested in the funds for a period of up to 10 years, allowing the Investments area to develop and consolidate its investment theses.

The area seeks to invest preferably in:

• Sectors with lower relative risk (beta), real assets with growth, companies with a recurring revenue profile that can benefit from the economic recovery;
• Middle market companies, which do not conflict with other services provided by the Company;
• Scalable investment platforms with the possibility of consolidation;
• Minority interests, working in partnership with local entrepreneurs who want to develop their companies in the long term;
• Opportunities with attractive entry prices;
• Non-competitive processes, developed within the extensive relationship network of the company’s partners and executives;
• Third-party and proprietary capital to ensure alignment of interests;
• Vehicles dedicated exclusively to each investment thesis.

BR Partners Gestora structures equity investment funds to invest and develop new business platforms, providing proprietary and third-party capital as new opportunities are identified in the same segment. This platform model makes it possible to build scalable investment theses, starting with less capital commitment and growing the asset base and exposure to the sector as new opportunities are identified and the Company feels comfortable with the business.

Currently, the company offers investors attractive risk-adjusted returns, mainly through an investment portfolio focused on the outlet malls segment, in which the Company is the largest financial investor in the country, owning 4 out of a total of 14 outlet malls.

In addition, in November 2021, the company raised a fund with a relevant minority interest to invest up to R$100 million in PetCamp, the largest pet retail chain in the interior of Brazil, with 32 units. The company follows a model of neighborhood stores, with approximately 350 m², and the business plan includes reaching 200 stores in the next 5 years, which would make it the 3rd largest pet retailer in the country.

The investment approach is based on knowledge of the local market, and takes into account specific aspects of emerging markets such as: lack of liquidity, growth, sector-specific dynamics, financial disintermediation, consolidation, privatizations, risk relative to other assets in the economy (beta ) and increased corporate governance.

Although they are potentially risky and generally illiquid, the activities related to these investment funds, when successful, can yield substantial returns on investors’ capital, generate attractive management and performance fees and capital gains on the proprietary investment.