Evercore’s G5 to Raise $1 Billion for Brazil Equity Funds

Evercore Partners Inc.’s joint venture in Brazil, G5 Advisors, is aiming to raise more than $1 billion to start three private-equity funds and a commercial real-estate fund in Sao Paulo.

“We see investors’ continuing appetite for Brazilian assets,” Corrado Varoli, G5’s co-founder, said yesterday in an interview. “Evercore will invest with us in the funds and will help us to raise money.”

Takeovers of Brazilian companies this year are keeping pace with 2010’s record volume, with 326 deals totaling $64.4 billion, data compiled by Bloomberg show. Last year’s total for the same period was $65.3 billion.

G5 wants to raise about $400 million for an oil and gas fund, $300 million for investing in power and utility assets and $200 million for luxury brands, Varoli said. The Sao Paulo-based mergers and acquisitions advisory boutique is also seeking 400 million reais ($252 million) for a commercial real-estate fund focusing on shopping centers in Brazil, he said.

Varoli, 50, a former partner at Goldman Sachs Group Inc., founded G5 in 2007. Evercore, the New York-based investment bank founded by Roger Altman, a former deputy secretary of the U.S. Treasury, bought 50 percent of G5 in 2010 for $20 million in cash and securities, with the potential of earn-out payments based on performance through 2013.

Brazil’s Bovespa Index has plunged about 26 percent this year, lagging behind global shares. Standard & Poor’s unprecedented downgrade of the U.S. credit rating on Aug. 5, coupled with Europe’s debt woes, rattled markets worldwide on concern a global economic slowdown will deepen.

Brazil Opportunities

“It’s always hard to raise funds and is particularly harder in this environment, but opportunities in Brazil are still significant,” Varoli said.

After expanding 7.5 percent last year, Brazil’s gross domestic product is projected to grow 3.96 percent this year, according to economists polled by Brazil’s Central Bank.

G5 operates a 300 million-reais hedge fund. It manages 4 billion reais for private-wealth clients and a 30 million-reais fund for residential real estate.

Kenny Juarez, an Evercore spokesman, declined to comment on the fundraising plan.

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