AgeRio - Agencia Estadual de Fomento
Interest in Funds
Variable Income Department.
AgeRio has an exclusive department for operations of equity investments, DEVAR (Variable Income Department). Composed of shares, funds' quotas and subscription bonus, the assets of DEVAR are usually long-term investments.
DEVAR and AgeRio
Aligned to invest in innovation.
The AgeRio´s mission to promote economic development of the State of Rio de Janeiro, with environmental responsibility and good governance practices, is also the mission that governs the DEVAR. Therefore, the investments of DEVAR aim for projects and innovative enterprises, which have as higher equity value, intangible assets. This is because such projects are rarely covered by conventional financing, because of the lack of guarantees or relevant financial background.
DEVAR as shareholder of innovation.
With the aim to practice the investment policy of entrepreneurial capital, or venture capital, DEVAR will acquire, directly or indirectly, shares of innovative companies that act on the resolution of critical problems for the society, which are relevant to the state's economy and have the potential for rapid growth. This way, DEVAR supports and invests in innovation, in society and the economy of the State of Rio de Janeiro. This investment based on securities and without requirement of quid pro quo or guarantees, is made in companies or projects that, among other points, submit high prospects of revenues with views its future sale. In these cases, there may be a significant gain of capital; on the other hand there is a high risk.
Indirect Application Structure
The Investment Funds - profitability and innovation.
Through the Investment Fund, AgeRio manages to combine profitability and investment in innovative projects. The indirect management of Investment Funds, performed by skilled professionals, provides better results in relation to the profitability of investments and leverage investments in the state. This model allows the participation of AgeRio so minority in funds formed for investment banks, foundations of social welfare, development institutions and other investors whose developmental strategy is similar to our own.
The Fund Managers increase our possibility of investment in projects really innovative, as they are responsible for analyzing the best alternatives for investments in projects.
Among the main advantages of indirect operation, it is possible to point out:
Management: administrators contractually guarantee the control of investment rules and disbursement, ensuring compliance with the accounting rules and providing investors with greater safety. This management also allows periodic compliance, through position reports of the assets and accounts.
Costs: The costs of service providers of the funds are scalable and proportional to the assets under management. Thus, it is not necessary the internal investment in staff by AgeRio, allowing the team of DEVAR to keep lean and concentrate on the professional qualifications and in investment strategy.
Custody: The transactions are recorded and the assets are kept safe by solid financial institutions called custodian, usually large banks accredited.
Security: Brazilian Securities Commission (CVM) regulates and oversees the funds industry in Brazil, overseeing the investment policy, risks and rates. Both the companies invested in the fund itself must be audited annually by an authorized institution
Transparency: Brazilian Securities Commission (CVM) offers to any person electronically access to general information of the fund, its portfolio, relevant figures and meeting minutes. The obligation of processing into Joint-Stock Company, even invested companies are obliged to publish their balance sheet and statements of results.
Governance: the funds have decision-making structure regulated, which protects the resources of interference/external influences on decisions of investments and the investors and/or their representatives in cases of civil liability associated with operational problems or acts performed by investee companies.
Tax: In case of sales of shares with capital gain (divestiture), there is no disbursement of Income Tax in the act of sale, since this is levied only on redemption of shares, diluted among the various existing operations, promoting the leverage of the appeal in the case of reapplication.
These are the reasons why the investment funds are the main instruments used for application of resources by investment institutions.
The management of the Fund
The management of the Fund is the responsibility of people or institutions authorized by CVM. They are responsible for selection of companies to participate of the funds and by monitoring their performance and ensure the decision-making on the actions related to conversions, divestment, among others.
The rate of remuneration of the management of the fund is formed by administration fee, percentage of fixed assets and by the rate of performance, variable remuneration related to the performance of the fund. The role of managers is of fundamental importance for the success of the fund, require a careful selection of assets that form their portfolio.
1. Fundo Burrill Brasil 1:
Fund of national participation with a focus on investing in companies in the sector of Life Sciences (Biotechnology), including therapies, diagnostics, medical equipment, health services, biofuels and bioinformatics.
- Burrill Brasil Gestão de Recursos Ltda.
- Rua Vinicius de Moraes, 111 - 3º - Ipanema
- CEP: 22411-010 - Rio de Janeiro - RJ - Brasil
- Telefone: (55 21)3988-9620
2. NascenTI Fund:
Fund work exclusively in the state of Rio de Janeiro, with a focus on investment in emerging businesses, whose revenue is less than R$ 2.3 million/year, of Information Technology (I. T.).
- Confrapar S.A.
- Praça Floriano 55 Sala 705 – Centro
- CEP: 20031-050 - Rio de Janeiro - RJ - Brasil
3. Funcine Rio 1:
Fund dedicated to the production, marketing and distribution of Brazilian audiovisual works; construction, reform and recovery of exhibition rooms; acquisition of shares of companies formed for display; acquisition of shares of Brazilian innovative companies for distribution and marketing of Brazilian audiovisual works and provision of infrastructure services with headquarters and administration in the state of Rio de Janeiro.
- Lacan Investimentos
- Avenida Brigadeiro Faria Lima 201, cj 82 – Pinheiros
- São Paulo - SP - Brasil
- Telefone: (55 11)3372-1234
- Pessoas Jurídicas
Balancing item for Funds Investments
- They are necessary conditions for the inflow of AgeRio:
- Allocation equal to or greater than the value docked by AgeRio in companies with headquarters in Rio de Janeiro state.
- Permanent Participation in Investment Committee.
- Application of proportional value the shares of AgeRio, in relation to the floating portfolio, exclusively in public securities or funds backed in these roles.
- Resolution 4023/11 of the National Monetary Council (Brazilian Central Bank - BACEN) determines what funds are permitted for investment by the funding agencies, which are:
- Quotas of Private Equity/Venture Capital Funds in Brazil (FIP),
- Quotas of Mutual Investment Funds in Emerging Companies (FMIEE),
- Quotas of Investment Funds in Emerging Innovative Companies (FIEEI),
- Quotas of Investment Funds in Infrastructure Participation (FIP-IE),
- Quotas of Investment Funds in participation in Intensive Economic production in Research,
- Development and Innovation (FIP-PD&I), that keep their funds invested mainly in assets directly related to the object of social development agencies.
- They were considered and reasoned, according to their characteristics and needs against the economy of the state of Rio de Janeiro, priority sectors of investments of this policy:
- 1. Strategic sectors: priority sectors for AgeRio, aligned with both the economic purpose of the state and the agency's strategic planning.
- a) Life Sciences
- b) Information and Communication Technology (T.I.C.)
- 2. Sectors of clear Competitive Advantage: important sectors in the economy of Rio de Janeiro, in which the state has differential of installed capacity, demand for investments, advantage logistics and geographical.
- a) Energy
- b) Audiovisual Industry
- 3. Sectors of Relevant Social Economic: sectors in expansion and growth prospects, where the lack of investment reflects directly on social and economic conditions of the state.
- a) Tourism and hospitality
- b) Clean Tech
- Operational Limitation and Risk Exposure (Variable Income)
- 1. They established the following operational limits for performance of AgeRio in Variable Income:
- a) Ceiling of 25% of the dimensions of the funds on the total amount of the Fund (CMN 4023 Resolution)