Private Equity and Venture Capital in Brazil - BVCA admin
Private Equity and Venture Capital in Brazil - BVCA admin
Private Equity and Venture Capital in Brazil - BVCA admin
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<strong>Private</strong> <strong>Equity</strong> Funds (FIPs)<br />
Most usual <strong>in</strong>vestment vehicle <strong>in</strong><br />
<strong>Brazil</strong>.<br />
Closed-end <strong>in</strong>vestment funds<br />
(condom<strong>in</strong>ium) with the purpose of<br />
<strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>Brazil</strong>ian listed or non listed<br />
companies or even <strong>in</strong> other funds regulated<br />
by CVM (<strong>Brazil</strong>ian Security Commission);<br />
Key driver: Beneficial tax treatment <strong>in</strong><br />
<strong>Brazil</strong><br />
Requirements for tax exemption:<br />
• Comply with all CVM rules:<br />
• Ownership – Investors (along with related<br />
parties) must own less than 40% of FIP quotas.<br />
• Tax Haven – None of the <strong>in</strong>vestors should be <strong>in</strong><br />
a tax haven jurisdiction.<br />
Source: A<strong>BVCA</strong>P.<br />
Seller<br />
Target<br />
LLC 1 LLC 2 LLC 3<br />
<strong>Equity</strong> <strong>Equity</strong><br />
FIP<br />
Hold Co<br />
S/A<br />
<strong>Equity</strong><br />
Debt<br />
<strong>Equity</strong><br />
<strong>Brazil</strong><br />
13<br />
US
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