Brazilian investments in national assets grew by 14% in 2023 and reached R$5.7 trillion, according to the Brazilian Association of Financial and Capital Market Entities (Anbima).
The “Collective Distribution of Investment Products” report, published by Anbima, shows a clear growth trend in the retail segment, with an average variation of 14.2%, between traditional, rising 14.3% to R$1.9 trillion, and high-income, rising 14.1% to R$1.6 trillion. The private segment, in turn, grew by 13.8% to R$2.1 trillion.
With regard to the distribution of investments, the highlight goes to the 25.58% growth in the market share of securities, totaling R$2.95 trillion in financial volume, while the amounts allocated to savings fell by 2.06% to R$925.7 billion.
Among the products that make up securities, Bank Deposit Certificates (CDB) advanced 22.74% and remain in the lead, totaling R$874.1 billion, followed by shares, which grew 16.45%, equivalent to R$716.1 billion, and Agribusiness Credit Bills (LCA), which grew 36.62%, totaling R$420.8 billion.
The results released by Anbima and other financial market entities are encouraging and demonstrate the maturity and resilience of Brazilian investors, even in such a challenging year from a political and economic point of view, both in Brazil and internationally.
Despite this, the results are not at all unexpected: in fact, the report released consolidated and expressed in figures the growth trend identified by the market over the last 12 months.
We would also point out that the analysis of this report, together with Brazil’s macroeconomic results and forecasts, as well as other external factors, show a trend towards even greater growth in investments in Brazilian assets.
In this context, we believe that the expansion of the supply of capital offers Brazilian companies an excellent opportunity to raise funds on the market and thus seek to expand their activities by carrying out mergers and acquisitions (M&A), issuing debt securities such as debentures, Agricultural Receivables Certificates (CRA), Real Estate Receivables Certificates (CRI), among others.
However, it is worth pointing out that any M&A transaction, debt issue, capital expenditure (Capex) and/or similar procedures require specialized legal advice at all stages: from the preparatory acts of the transaction (drafting of confidentiality agreements, memoranda of understanding) to the strategic negotiations and drafting of contracts and other definitive instruments of the transaction (contracts for the purchase and sale of shareholdings, investment contracts), as well as any post-closing measures (partner or shareholder agreements; drafting and/or review of stock option plans, etc.).
Finally, Brazilian companies that intend to receive investments, issue debt, expand operations or even partners and shareholders who wish to sell all or part of their respective shareholdings are recommended to carry out prior due diligence and/or corporate reorganization, as the case may be, in order to maximize the valuation of the company, as well as increase its attractiveness to potential investors or buyers.
These strategic actions can also help to identify and mitigate business risks, improve operational efficiency and profitability, enhance the capital structure and optimize the allocation of resources.
