PE in Brazil

So just got back from traveling. Enamored by the women and the country itself. Have learned alot about the country's position as an emerging market. Major problem I noticed was lack of infrastructure in certain areas although should be remedied largely through preparations for the world cup and olympics.

Back to my question: is anyone on here working in Private Equity down there or have exposure to the PE world there? I know a majority is in Sao Paulo. I am wondering beyond becoming fluent in Portuguese, what it would take to transition down after an analyst stint in banking (which yes I already have locked up).

Also noticed their currency is kicking the dollars ass so any idea on salaries because they spend and live more lavishly than we do. All of us traveling except the Brits found Brazil really expensive to live in (food,clothes,entertainment). Yet, in rio you see Brazilians outspending you and no one actually seems to be working, rather they are at the beach all day.

Makes me believe they must be very well compensated in general sense ( I am obviously ignoring the large amount of poverty and the existence of favelas)

 
Best Response

Their spending habits are directly tied in to their culture. That's how they are and always have been. A better economic situation may magnify this fact, but is not the cause.

Brazil's obviously on the way up, but they still have very much of a third world colonialist power structure. If you look a little into their economic history, you start to doubt whether they can really handle prosperity as a society in the long term. There are still huge issues to address and the coming Olympic Games and World Cup may actually expose a lot of weaknesses which are currently being overlooked.

I bring these issues up, because their power hierarchy is very much inbred and connection based. There are tons of people looking to get themselves placed down there, so networking will be far more important than where you worked or what you did there.

The majority of the future Brazilian power players are currently getting educated in the U.S. and (more so) Western Europe. They all speak 3+ languages and are actually ahead of the curve in comparison to many potential American competitors such as yourself.

What will make you stand out is an understanding of Brazil's history. This is something finance types readily ignore, but Brazilians are a very proud people and (unlike many emerging market countries) have absolutely no romanticized notions of America or Americans. In other words, they are not the least bit impressed by guys like you. Therefore, you will have to show that your being enamored equals you being informed.

Yes, any jackass can see they need better irrigation...fucking Sao Paulo has a canal people piss in when they pull of the highway leading to the city. I am talking about bigger ideas and bigger plans. Projects and maneuvers which will make Brazil the true power it seeks to be.

This is not the least bit easy to sell and is equally futile unless you're talking to the right people.

Therefore build very strong ties to the people you have met down there an network constantly. Learn about their culture via as much historical reading as you can accomplish. If at all possible, learn Portuguese well enough to be able to learn about the country through their own resources and not some gringo travel fuck book.

Follow these rules and you'll have mad reals to break up, if not Bernanke's fiat...24 years...on the wake up.

 
Midas Mulligan Magoo:
Follow these rules and you'll have mad reals to break up, if not Bernanke's fiat...24 years...on the wake up.

Love the hidden Biggie reference, haha.

Also, OP check out this Economist article on Brazilian PE: http://www.economist.com/node/18178275

You are right, most of the stuff is in São Paulo, the rest is in Rio. The industry is booming down there, some people think it's even a bubble going on, but I doubt it. They reference the previous bubbles South America has had in recent years, and how Brazil has suffered from inflation problems, but I think the country is fundamentally strong now. Midas is right though, there are major problems to be fixed, mainly:

1) Infrastructure = upgrade transportation and other infrastructure in major cities (in São Paulo, executives ride helicopters to/from work because of traffic) 2) Corruption = Brazilian politics is corrupt as hell, as is the police. Also to get things done you sometimes you have to bribe a government official. 3) Tax system + business law = Brazil ranks very poorly in the "doing business" ranking, it's hard to start a company there and the taxes are high and very complicated (tariffs are also ridiculous) 4) Security = executives in Brazil ride around in bulletproof cars, and bulletproofing is a booming industry. Cops can't be trusted (they sell drugs and rob people).

But believe it or not things are way better than they were 15 years ago... and are getting better. I am surprised Dilma Roussef hasn't fked things up, the country is actually doing well so far under her presidency and although they have a long way to go, I could write a 20-page essay on why Brazil is going to be very strong in the next few decades.

Wall Street leaders now understand that they made a mistake, one born of their innocent and trusting nature. They trusted ordinary Americans to behave more responsibly than they themselves ever would, and these ordinary Americans betrayed their trust.
 
Midas Mulligan Magoo:
The majority of the future Brazilian power players are currently getting educated in the U.S. and (more so) Western Europe. They all speak 3+ languages and are actually ahead of the curve in comparison to many potential American competitors such as yourself.

I really hope you're right haha. I'm a Brazilian currently studying in Canada - and I also speak 4 languages.

I can certainly confirm that if you'd like to work in Brazil, you'll have to start studying the history (we are indeed very proud of our nationality) and learn some Portuguese.

 

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Wall Street leaders now understand that they made a mistake, one born of their innocent and trusting nature. They trusted ordinary Americans to behave more responsibly than they themselves ever would, and these ordinary Americans betrayed their trust.

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