© Bloomberg. Supporters of Jair Bolsonaro, presidential candidate for the Social Liberal Party (PSL), wave a Brazilian national flag from a car while celebrating after polls closed during the second round of presidential elections in Rio de Janeiro, Brazil, on Sunday, Oct. 28, 2018. Bolsonaro swept to power in Brazil’s presidential election Sunday, marking a hard pivot to the right that promises to open up the resource-rich economy to private investment, strengthen ties to the U.S. and unleash an aggressive crackdown on epidemic crime. (Bloomberg) — Brookfield Asset Management Inc. is pretty pleased with the political shift in Latin America’s largest economy, underscoring the potential for a Brazilian private equity boom under the right-wing administration of Jair Bolsonaro.
The Toronto-based alternative asset manager has a lot on the line in Brazil. It has been investing in the country for more than 100 years and expanded when the recent recession prompted cash-strapped companies including Petroleo Brasileiro SA to sell assets. It has $42 billion in assets under management in Brazil, according to its website.
Those investments have become more valuable with the Brazil currency rallying ahead of Bolsonaro’s victory on Oct. 28, and the improved business climate will lure other potential buyers, Sachin Shah, the chief executive officer for Brookfield’s renewables division, said in a conference call.
“That’s net-net-net positive to our existing assets in the marketplace and I think generally net positive for investment flows in the country,” Shah said. “I think you will see more asset sales in the country, in particular in the power sector as the country needs the capital.”
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Source: Investing.com
