In a strategic transfer to strengthen its place in Latin American different investments, Brazil’s Vinci Companions has acquired Lacan Ativos Reais, a number one forestry asset supervisor with roughly R$1.5 billion ($260 million) in property below administration. The transaction, which closed on Nov. 4, 2024, marks Vinci’s entry into the forestry sector and follows intently on the heels of its latest merger with Compass.
Lacan, based in 2000, has established itself as a outstanding Timberland Funding Administration Group (TIMO) in Brazil. The agency presently manages 130,000 hectares of planted forests and preserved areas throughout 4 Brazilian states, with all operations sustaining FSC certification. The corporate focuses on sustainable practices, particularly focusing on cleared or degraded lands for its plantations.
“Brazil affords quite a few aggressive benefits within the forestry sector, holding a powerful 8% share of the worldwide roundwood market,” stated Luiz Augusto Candiota, founding companion and chairman of Lacan. “The nation’s eucalyptus cultivation course of will not be solely distinctive but in addition probably the most environment friendly on the planet.”
For Vinci Companions, the acquisition represents one other step in its regional growth technique. The agency not too long ago accomplished a merger with New York-based Compass, making a full-service Latin American different asset supervisor with over $52 billion in AUM throughout non-public markets and public equities as of June.
“The mixture with Compass permits us to broaden our focus past Brazil and into the broader Latin American market, a area we consider is likely one of the most compelling globally for future progress with the growing penetration of different investments,” stated Vinci Companions CEO Alessandro Horta.
The Lacan acquisition comes at a time of accelerating curiosity in Latin American forestry investments. Simply six months in the past, BTG Pactual’s Timberland Funding Group closed its BTF II fund with $1.24 billion in fairness commitments, focusing on forestry property throughout Brazil, Chile, and Uruguay.
The deal construction consists of an preliminary money cost adopted by potential earnout funds over 4 years, tied to fundraising and administration charge income targets. Vinci Companions expects the acquisition to instantly enhance its Price Associated Earnings and Distributable Earnings per share.
“Now we have at all times regarded the forestry sector in Brazil as a main alternative for capital deployment,” stated Horta. “With the staff and powerful monitor document of Lacan, we consider there’s alternative to broaden the technique exterior of Brazil.”
Lacan’s current enterprise consists of three vintages of closed-end funding automobiles with minimal ten-year lockup durations, and a fourth classic presently in fundraising. The agency has constructed sturdy relationships with institutional buyers from each Brazil and Europe.
Advisors
Pinheiro Neto Advogados served as authorized counsel to Vinci Companions within the transaction, whereas Cepeda Advogados represented Lacan.
