Highbridge Capital Management, the global alternative asset manager owned by J.P. Morgan Asset Management, has purchased a majority interest in Gavea Investimentos, a Brazilian alternative asset manager with around $6bn (€4.3bn) in assets under management.
Gavea was co-founded in 2003 by chairman and CIO Arminio Fraga, former president of the Central Bank of Brazil.
The acquisition gives J.P. Morgan AM local, on-the-ground, expertise, which is vital as Latin America and Brazil in particular continue to capture investor interest.
Glenn Dubin, CEO of Highbridge, said: "Gavea will provide us with greater macroeconomic insight and direct exposure to investing in Brazil, which will be a powerful addition to our investment capabilities."
Fraga, at Gavea, said: "While our emerging market investment strategies can enhance Highbridge's global platform, we will benefit from their successful track record of building businesses like ours. Ultimately, this partnership will ensure that we continue to perform for our clients."
Highbridge and Gavea will have a relationship similar to that created by J.P. Morgan Asset Management's original purchase of Highbridge in 2004.
Gavea's investment process will remain unchanged, and its day-to-day activities will continue to be managed by its executive team. This includes Arminio Fraga; Luiz Fraga, co-Founder and co-CIO of private equity, Gabriel Srour, co-CIO of hedge funds, Chris Meyn, head portfolio manager of private equity, and CEO Amaury Bier, a former deputy finance minister of Brazil.
The transaction is subject to the satisfaction of documentation conditions and is expected to close shortly.
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