Private Equity and IPOS: How to break the sector’s timid participation? 2024 | GRI Club | 19 February 2024 | Blue Tree Premium Faria Lima Hotel, Av. Brig. Faria Lima, 3989 - Itaim Bibi, São Paulo - SP, 04538-133, Brazil

Agribusiness, essential for the Brazilian economy, faces a series of challenges in the investment scenario, especially when we consider the timid participation of Private Equity funds and the reduced number of IPOs in the sector, despite the strength it represents. Among the reasons that justify this timidity is the high cost of opening capital and maintaining an SA, which ends up discouraging companies in the sector, which also deal with the peculiarity of the cyclical demand for financing, due to commodity cycles.

Furthermore, the 'crowding out' phenomenon, exemplified by the role of Banco do Brasil, which deliberately finances and subsidizes the sector, seeking financing alternatives aligned with public policies, also ends up keeping companies away from the stock market.

Given this scenario, collaboration between agribusiness executives and public authorities is essential to propose solutions that include the creation of tax incentives, simplification of processes for opening capital and the promotion of attractive environments for private investors.

What is crucial to develop flexible financial mechanisms, considering the unique dynamics of agribusiness, to promote the sector in the capital market, breaking the sector's timid participation?

2024 Partners

CLUB PARTNERS:
• Marsh Brasil Corretagem de Seguros
• Cescon, Barrieu, Flesch & Barreto Sociedade de Advogados
• Fitch Ratings
• Madrona Fialho Advogados