Credit & Private Credit
Corporate credit in Brazil is moving from bank balance sheets to the capital markets and to funds. Those who provide financing increasingly have to analyse the structure themselves.
Our view
Debentures, FIDCs and receivables certificates now finance companies that used to rely almost entirely on banks. This widens access to funding, but shifts to the investor the task of assessing documentation, collateral and governance, not only the rate.
Internationally, private credit refers to bilateral lending by funds outside public markets, a segment that has grown rapidly in the United States and Europe. In Brazil, “crédito privado” usually means securities from non-sovereign issuers traded in the market. Structured bilateral transactions, with collateral, covenants and close monitoring, remain a smaller segment with room to grow.
Non-performing portfolios are a market of their own, where price depends on the quality of information and the capacity to collect. There, due diligence matters more than the model.
Themes we follow
- Non-performing portfolios (NPL) and pricing of stressed credit
- Structured credit with real collateral
- Financing for mid-sized companies
- Servicing, collection and recovery
- Credit risk in high interest-rate cycles
Related expertise
Publications
The first publications for this market are in preparation.
Speak with the partners.
Every transaction calls for its own approach. An initial, confidential conversation lets us assess whether and how we can contribute.
Contact Fortevere