JGP and BB Asset, from Banco do Brasil, have decided to create a new ESG manager.
The house should generate assets of around R$500 million, made up of ESG funds already managed by JGP; BB Asset's ESG portfolios (totaling approximately R$1.2 billion) remain at BB.
The plan is to launch products in the equity, credit, private equity and agribusiness sectors.
The capital structure has not been determined, and the company still needs regulatory approvals to start operations.
BB and JGP have signed a debt instrument convertible into shares, and this conversion will depend on conditions such as the establishment of new corporate governance structures (supervisory committees, for example).
Deadline for converting partnership to justice He is 23 months old.
The development of the business with JGP began in the second half of last year, when Denisio Liberato took over as President of BB Asset.
Some sovereign wealth funds approached BB Asset looking for options to “decarbonize the portfolio,” but the manager saw that it did not have anything structured to serve the institutional investor.
“BB Asset is committed to being a hub for environmental, social and governance investing,” Denisio said.
Management of the funds will be the responsibility of JGP, which will transfer its Environmental, Social and Governance Intelligence area, headed by José Bogas, to the new director. Marcio Correa, Equity Manager at JGP, and Alexander Müller, Credit Manager, will split their roles in the Rio house and in the company with BB.
“Brazil’s great diversity enables our country to be of great importance in the transition to a low-carbon economy and shorten the distance to more equal and just societies,” said Andrzej Jagorski, founder of the JGP.
BB Asset, which has assets of more than R$1.5 trillion, has closed a series of partnerships with managers to make up for its shortfall in some markets.
Since the manager has to recruit employees through generic competition, he is not always able to attract the specialists he needs, which delays growth in certain areas. One way out is to form partnerships.
The first closed in November 2022 with Occam and focused on private credit funds. The second closed with Trígono, which specializes in small caps, In June of last year.
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