Alexandre Pierantoni

The proposed revisions to the B3 Novo Mercado Regulation reflect an effort to align the Brazilian market with international best practices in corporate governance. Below is an analysis of the pros and cons of each proposal, along with a comparison to practices in the US and Europe. 1. Novo Mercado Alerta (New Market Alert) Pros: • Transparency: The “Novo Mercado Alerta” proposal improves market clarity by informing investors about potential issues without triggering immediate sanctions. • Flexibility: It allows companies to correct irregularities before facing penalties, offering a “warning” system. • Non-punitive: The focus on transparency rather than immediate punishment can help companies address compliance sooner than later. Cons: • Reputational impact: Even if not intended as punitive, the alert could create negative perceptions in the market, harming the company’s image. • Investor uncertainty: Without immediate sanctions, investors may feel unsure about the seriousness of the issues. Comparison to international practices: • In the US, the Securities and Exchange Commission (SEC) does not have a similar alert mechanism. Companies that fail to meet disclosure obligations typically face direct sanctions or investigations. • In Europe, regimes like the UK Corporate Governance Code emphasize swift sanctions or public investigations, without an intermediate warning system. 2. Limitations on board members serving multiple companies Pros: • Dedication and focus: Limiting the number of boards a member can serve on (maximum of five) enhances governance quality, ensuring greater focus from each director. • Improves board effectiveness: Reducing the accumulation of positions minimizes conflict of interest risks and enhances strategic oversight of companies. Cons: • Limited talent pool: In Brazil, where the pool of qualified board members is relatively small, this rule could reduce the availability of experienced professionals. • Restricted flexibility: Some board members can effectively serve multiple companies without loss of performance, especially within conglomerates or in specialized sectors. Comparison to international practices: • In the US, there is no strict limitation on the number of boards, but there is growing pressure to avoid overloading directors. NASDAQ and NYSE encourage boards to monitor member commitments, which makes much more sense. • In Europe, particularly in the UK and France, stricter limits exist to ensure independent directors are not overburdened. In the UK, the Financial Reporting Council (FRC) recommends directors not serve on more than three listed company boards.

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3 ACTIONS TO REDUCE REPUTATIONAL RISKS FOR SECURITIZATION FIRMS AND FUND MANAGERS IN BRAZILIAN CAPITAL MARKET DEBT OFFERINGS With the growing volume of offerings of #Brazilian Real Estate Receivables Certificates (#CRI) and Agribusiness Receivables Certificates (#CRA), which reached BRL50 billion in the first half of 2024, securitization firm, structurers and fiduciary agents must take care of the #reputationalrisks associated with the transactions. Reputational risks are events that can negatively impact an organization's credibility in the eyes of the market, its employees and regulators, generating financial and brand liabilities. In Brazilian capital market offerings, because they involve both the perception of trust and transparency, as well as more complex legal structures, multiple parties and high values, this type of risk is more evident and harmful if it materializes. See below the material "3 Actions to Reduce Reputational Risks for Securitization Firms and Fund Managers in Brazilian Capital Market Debt Offerings" prepared by Feijó Lopes Advogados Structured Finance and Capital Market team. #agribusiness #brazil #structuredfinance #privatecredit #latinamerica #funds #wealthmanagement #receivables #realestate

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📊#MarketRoundup: Warburg Pincus buys stake in tech accounting startup Private equity firm Warburg Pincus LLC has acquired a minority stake in Brazilian tech accounting startup Contabilizei for USD 125 million, becoming its largest shareholder.  Contabilizei was founded in 2013 and offers automated accounting services for small businesses and self-employed individuals, simplifying tasks such as company formation and paying taxes in Brazil’s notoriously complicated tax system. New investor. Warburg Pincus acquired shares from other venture capital firms, including the entire stake held by KASZEK Ventures. Contabilizei CEO and founder, Vitor T., says the transaction is a chance for Contabilizei to leverage Warburg Pincus’s expertise. State of play. Traditional, local accounting offices or self-employed individuals usually provide most of Contabilizei’s services. Brazil currently has over 533,000 registered accountants and 94,000 accountant firms. With 1,300 employees, Contabilizei only has about 80 accountants on its payroll. 🔗Read more in our full article by Letícia Arcoverde here 👇 https://lnkd.in/dZvtxWMB #Startups #Accounting #Brazil #Technology

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“Second” Solana ETF Approved in Brazil!! Brazilian Securities and Exchange Commission (CVM) has approved a “second” Solana ETF, per a CoinDesk report. The ETF product will be reportedly launched by a Brazil-based asset manager Hashdex in partnership with local investment bank BTG Pactual. This Solana ETF may be the 2nd of its kind in Brazil, after CVM approved the country's first Solana ETF on August 8, which was offered by a Brazil-based asset manager QR Asset. It is quite interesting to observe that in about two weeks’ time, two Solana ETFs have been approved in Brazil. What a speedy development! Is it a sign that Brazil may become the first runner jurisdiction to be open to more diversified crypto assets ETFs where ETFs on other crypto currencies and assets can be tried, while US and Hong Kong appear slowing down on other cryptocurrency ETFs after Bitcoin and Ethereum ETFs’ approvals? Read on more in the report. #cryptoETF #ETF #cryptocurrencyETF #BitcoinETF #EtherETF #Brazil #cryptoasset #cryptocurrency #DLT #Blockchain (Any contents shared are only for information sharing purposes and are not any investment or legal advice or do not intend to support any product, price, company, platform, information, opinion, etc.)

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Our Q1 2024 Results are now out. The performance of our Group in the first quarter is tracking in-line with our expectations and there have been strong performances in the majority of our markets. However, we’ve also seen that known issues in other markets has dampened some of that positivity. In Brazil, our business has returned to good year-on-year growth as we see a significant increase in customer volumes as the operational improvements we implemented last year pay dividends.    We’ve seen strong customer acquisition growth at BetMGM helped by the Las Vegas Super Bowl, as well as excellent engagement during March Madness. We’re continuing to improve our BetMGM product with exciting new capabilities and Angstrom-powered markets.    A big thank you to Team Entain for their hard work. There’s still more to do and we’re fully engaged in delivering operational improvements, product enhancements and a more efficient and agile organisation. https://lnkd.in/eKRwkpnn #ItsYourGame

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Brazil: BCB’s monthly GDP proxy recorded an increase of 2.1% year-to-date IBC-Br, the BCB’s monthly GDP proxy, recorded a 2.1% year-to-date, in line with the latest Focus Readout. However, Q2-2024 started with an increase of only 0.1% m/m in April, according to data released by the BCB. The lack of growth in the indicator comes after a 0.4% m/m decline in March. Considering that the IBC-Br was designed to estimate GDP from the supply side, we can speculate that the indicator's stability for the month resulted from declines in industrial production and real revenue in expanded retail, which were offset by an increase in real revenue in the services sector. Overall, the static result in April occurs in a context of uncertainties regarding economic activity in the last two months of the Q2-2024, due to the environmental disaster that reached the state of Rio Grande do Sul, which is likely to have a negative impact on the indicators for the period. Nevertheless, the labor market remains tight, with a strong expansion in real wage mass and expectations for the reconstruction of Rio Grande do Sul through private and public resources, maintaining a positive outlook for the coming quarters. The latest Focus Readout indicates an increase of 2.1% y/y for 2024, ceteris paribus. Produced by Macro+Markets

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Join us at the 15th Private Equity Latin America Forum to explore how Latin America redefines its private market investment landscape. 🌎 📆 December 9-10, 2024 📍 Hotel Unique, São Paulo The conference brings together leading investors, fund managers, and advisors to discuss industry trends, due diligence strategies, and emerging private investment opportunities in Latin America and beyond. The event features industry-leading experts sharing insights on private equity, including sector-specific sessions on Brazil and Latin America, global buyout opportunities, and roundtables with top Latin American institutional investors discussing their strategies. Don’t miss the opportunity to connect with Francine Balbina, Country Head – Brazil, and Roberto Cortese, Regional Managing Director – Latin America to discuss how we can help you thrive in the current market landscape. #PrivateInvestment #PrivateEquityLatinAmericaForum #LatinAmerica #WeAreApex #InvestmentMarket

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With foreign debt financing by Brazilian issuers surging again and reaching a three-year high in 2024, local companies are seeking to refinance existing obligations or invest in new projects. In a recent Reuters interview, Linklaters Partner Matthew Poulter shared that after holding borrowing costs steady, the U.S. Federal Reserve has resumed cutting rates, potentially prompting more firms to explore opportunities in the U.S. market. Read the article: https://lnkd.in/eWhyFazH. #Debt #Financing #LatinAmerica #Interestrates

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Brazil is the next frontier for international asset managers

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Renato Grandmont, Managing Partner & Chief Investment Officer at Link Capital Advisors shares his opinions about the negative aspects in the Latin American Ecosystem. ❌😳 Which are them and how can they be overcome? ✅ 🎧Discover this and more information in the complete episode ➡️ https://lnkd.in/gv3Mufsg #innovation #entrepreneurs #FrissOncapital #TheOutliers #startups #healthecosystem #lifesciences #LATAM #technology #entrepreneurship

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💰 Brazil’s Payment Future: Pix Set to Fuel Massive Economic Growth | Discover How 👇 📃 A new report by ACI Worldwide and Cebr projects that Pix could gain 2.8 million more account holders in Brazil by 2028, potentially generating R$51 billion in additional revenue for financial institutions. 🎇 With this growth, Pix could push Brazil's GDP up by R$284 billion in 2028, nearly double the R$140 billion boost it delivered in 2023. 🏆 This acceleration positions Brazil as by far Latin America's clear leader in real-time payment adoption, outpacing markets like Mexico and Argentina. 📉 For consumers and businesses, Pix is more than a payment tool, it’s a money-saver, slashing transaction costs by R$105 billion in 2023 alone, with a projected R$254 billion in savings by 2028. ✅ Brazil’s digital economy isn’t just growing, it’s thriving. Are you ready for what’s next? #DigitalFinance #Pix #Fintech #Brazil

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'Reputational Risks' in #Brazilian Capital Market Debt Offerings: How Securitization Firms and Fund Managers Mitigate Them With the growing volume of offerings of Brazilian Real Estate Receivables Certificates (#CRI) and Agribusiness Receivables Certificates (#CRA), which reached BRL50 billion in the first half of 2024, and certain recent cases of defaults, securitization firm, structurers and fiduciary agents must take care of the #reputationalrisks associated with the transactions. Reputational risks are events that can negatively impact an organization's credibility in the eyes of the market, its employees and regulators, generating financial and brand liabilities. In Brazilian capital market offerings, because they involve both the perception of trust and transparency, as well as more complex legal structures, multiple parties and high values, this type of risk is more evident and harmful if it materializes. See below a material prepared by Feijó Lopes Advogados Structured Finance and Capital Markets team on this hot topic. #privatecredit #brazil #agribusiness #realestate #latinamerica #familyoffices #wealthmanagement #privatefunds #npl #lending

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Further on the UNICA report basis August 1 2024 The following comments are taken from the UNICA report found on page 2. Additional comments can be found in the Brazilian report not the English version. The devil is in the details in the comments "On average for the State of São Paulo, the data collected indicate a decrease in productivity of over 15% in July, reaching 20% ​​in regions such as Araçatuba, Assis and São José do Rio Preto" Quote São Paulo, August 13, 2024 In the second half of July, the production units in the Center-South region processed 51.31 million tons compared to 53.09 million in the 2023/2024 harvest – which represents a decrease of 3.35%. In the accumulated total from the beginning of the 2024/2025 harvest until August 1, milling reached 332.88 million tons, compared to 312.12 million tons recorded in the same period in the 2023/2024 cycle – an increase of 6.65%. Preliminary data from the Sugarcane Technology Center (CTC), for a common sample of 102 production units, indicate an agricultural yield of 87.5 tons per hectare harvested, on average, in the fields of the Center-South. This value represents a 10.5% decrease in relation to the index recorded in the same period of the 2023/2024 harvest. In the accumulated period from April to July, the index shows a drop of close to 5%. UNICA's Director , Luciano Rodrigues, adds that “this preliminary information from July is already beginning to portray the conditions observed in the field for the sugarcane that is yet to be harvested. On average for the State of São Paulo, the data collected indicate a decrease in productivity of over 15% in July, reaching 20% ​​in regions such as Araçatuba, Assis and São José do Rio Preto”. At the end of the second half of July, 257 units were in operation in the Center-South, of which 238 were sugarcane processing units, nine were corn-based ethanol producers, and ten were flex-fuel plants. Regarding the quality of the raw material, the level of Total Recoverable Sugars (ATR) recorded in the second half of July reached 146.86 kg of ATR per ton of sugarcane, compared to 144.07 kg per ton in the 2023/2024 harvest – a positive variation of 1.93%. In the accumulated harvest, the indicator shows 133.1 kg of ATR, a slight increase of 0.14% compared to the same period of the last cycle. Rodrigues explains that the proportion of sugarcane used to manufacture the sweetener reached 50.28% in the second half of July, below the 50.63% recorded last year. “The proportion of sugarcane used to manufacture sugar continues to be affected by the quality of the raw material,” adds the executive. “Despite the fact that 3 kg more ATR was recorded per ton of processed sugarcane in the second half of July, the sucrose content is practically the same as that observed in the same period of the last cycle, since the purity of the juice fell by two percentage points compared to the same period in 2023,” adds Rodrigues. Unquote

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Brazil might be known for samba, soccer and sugar. But you can now add digital transformation to that list. This country with a population of 215 million has emerged as one of the global leaders in digital engagement among its consumers. The nation’s success in digital innovation is underscored by the widespread use of Pix, an instant-payment app launched by Brazil’s central bank in 2023. Additionally, the payment/eCommerce platform Mercado Libre (also referred as "Amazon of Latin America") is still in widespread use. This adoption is a testament to Brazil’s strong digital infrastructure, with two-thirds of consumers owning smartphones and 92% having access to at least a 4G network. As the recent survey suggest, there are substantial variations in the degree of digital engagement for consumers in different countries based on the average number of activity days per month across the population. The countries surveyed include US, UK, France, Germany, Italy, Netherlands, Spain, Australia, Japan, Singapore and Brazil. The sample sizes were statistically representative of the population in each country, considering gender, age, income and education. To measure digital engagement, the report identified 40 core activities within 11 pillars of digital life, such as banking, shopping and entertainment. Respondents indicated their engagement frequency for these activities. The results were then extrapolated to estimate the number of days consumers engaged in each activity per month. This allowed for a comprehensive comparison across different demographics and countries. Brazil had the highest number of activity days, at 361 (12 activities per day). The U.K., which was the median country, had 276 activity days (9.2 activities per day) — 77% of Brazil’s score. Japan was the lowest, with just 127 activity days (4.2 activities per day) — barely one-third of Brazil and less than half of the U.K. Brazil’s digital engagement spans various activities ranging from video streaming to mobile banking to music streaming and social media. Generational and income dynamics further highlight the breadth of digital engagement in Brazil. Millennials and Generation Z are the most digitally active, with 405 and 411 activity days per month, respectively. Generation X follows with 335 days, and baby boomers with 271 days. High-income earners lead with 456 activity days, compared to 363 for middle-income and 309 for low-income earners. The digital engagement “winners,” based on total activity days, vary by generation. French Gen Z users are the most active, with 464.8 activity days per month and about 15.5 activities per day. Millennials in the U.S. lead the entire generation in digital engagement, with 446.7 activity days and 14.9 activities per day. In Brazil, Gen X and baby boomers come out ahead of other countries.

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#termsheet is a widely used legal instrument in Brazil for #privatecredit, #mergersandacquisitions, #venturecapital and #capitalmarkets transactions. As it constitutes a pre-contract, Term Sheets should be given close attention by Brazilian and foreign #investors and #lenders and #companies doing business in #Brazil, as they establish expectations, rights and obligations related to the contracting parties and the underlying business. I am delighted to share the material "5 Key Clauses in CRI, CRA and Structured Credit Term Sheets that Financiers Should Pay Attention to" prepared by Feijó Lopes Advogados Structured Finance, M&A and Capital Markets team.

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Brasilian fintech Matera has secured a $100 million investment from Warburg Pincus LLC #Matera, a leading Brazilian #fintech company, has secured a significant $100 million investment from #WarburgPincus to expand its instant payment solutions into the U.S. market. Founded in 1987 by CEO Carlos Netto, Matera has been instrumental in the success of Brazil’s Pix, the instant payment system launched by the Central Bank of Brazil. Pix has revolutionized payments in Brazil, with widespread adoption allowing even street vendors to accept mobile wallet payments. Matera provides essential technology to financial institutions, enabling them to send and receive Pix transactions, generate QR codes, and perform various other functions within the Pix environment. Since Pix's introduction in 2020, Matera has experienced rapid growth, achieving a 4x increase and reaching $77 million in revenue in 2023. The company processes close to 500 million Pix transactions monthly, a figure expected to double soon. Warburg Pincus' investment gives it a majority stake in Matera, helping the company navigate the U.S. market. Matera plans to offer digital twin and QR code payment solutions in North America, enhancing but not replacing existing core banking systems. This strategy aims to make financial institutions more agile and help the U.S. catch up with Brazil in instant payments. Henrique M., Managing Director of Warburg Pincus, noted Brazil’s leadership in advanced payment infrastructure and Matera’s pivotal role in this ecosystem. With 1,100 employees and a robust subscription-based model, Matera is well-positioned to drive significant advancements in the U.S. fintech landscape. The article on TechCrunch in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW

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🔍 𝗗𝗶𝘀𝗰𝗼𝘃𝗲𝗿 𝘄𝗵𝘆 𝗕𝟐𝟎’𝘀 𝗜𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 & 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗧𝗮𝘀𝗸 𝗙𝗼𝗿𝗰𝗲 𝟐𝟎𝟐𝟒 𝘀𝗲𝗲𝘀 𝗰𝗼𝗿𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗮𝘀 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗷𝘂𝘀𝘁 𝗮𝗻 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗽𝗹𝗮𝗴𝘂𝗲, 𝗰𝗼𝘀𝘁𝗶𝗻𝗴 𝘁𝗿𝗶𝗹𝗹𝗶𝗼𝗻𝘀!   𝗕𝟐𝟎 "𝗜𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 & 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗧𝗮𝘀𝗸 𝗙𝗼𝗿𝗰𝗲" highlights the expanding role of #integrity and #compliance, extending beyond traditional #anticorruption measures to encompass environmental and social principles. According to the United Nations (UN), organised crime syndicates generate annual profits of USD 50 to USD 152 billion from illegal deforestation alone.   Corruption, costing the global economy an estimated $3.5 trillion annually, has devastating effects on the economy and society. Tackling corruption could lead to a 20% improvement in food security, highlighting the broader impact of effective governance.   The Task Force advocates for stronger collaboration among the private sector, public institutions, and civil society to build more resilient, transparent, and accountable organisations.   𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻 1: 𝗘𝗻𝗰𝗼𝘂𝗿𝗮𝗴𝗲 𝘁𝗵𝗲 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗶𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 𝗮𝗻𝗱 𝗮𝗻𝘁𝗶-𝗰𝗼𝗿𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗺𝗲𝗮𝘀𝘂𝗿𝗲𝘀 • Incentivise compliance: Offer rewards or benefits to companies that successfully implement and enforce integrity and anti-corruption measures. • Encourage businesses to adopt integrity and anti-corruption frameworks rooted in sustainable practices to ensure long-term success. • Tailored solutions for MSMEs: Customize integrity measures specifically for Micro, Small, and Medium Enterprises (MSMEs) to help them thrive in the long term while maintaining ethical standards.   𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻 2: 𝗘𝗻𝗴𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗽𝘂𝗯𝗹𝗶𝗰 𝘀𝗲𝗰𝘁𝗼𝗿 𝗮𝗻𝗱 𝘃𝗮𝗹𝘂𝗲 𝗰𝗵𝗮𝗶𝗻 𝘁𝗼 𝘂𝗽𝗵𝗼𝗹𝗱 𝗶𝗻𝘁𝗲𝗴𝗿𝗶𝘁𝘆 • Promoting collaboration among the public sector, private sector, and civil society • Employ risk-based methods to combat corruption, especially related to climate finance and human rights abuses. • Developing effective measures such as structured integrity education programs, as well as establishing global business networks   𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻 3: 𝗣𝗿𝗼𝗺𝗼𝘁𝗲 𝗲𝘁𝗵𝗶𝗰𝗮𝗹 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝘁𝗼 𝗳𝗼𝘀𝘁𝗲𝗿 𝗶𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗴𝗿𝗼𝘄𝘁𝗵 • Promoting ethical leadership and integrity tone from the top is crucial for guiding society towards sustainable and inclusive growth • Ensuring transparency and ethical practices in the development, deployment, and use of AI • Investing in whistleblower protection mechanisms.   This document has been presented at the #B20Brasil 2024.   Feel free to share any thoughts or feedback on this proposal, particularly as we move into the next steps.   Hi Nicola Allocca, I would also appreciate any advice you might have.   Stay tuned!

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