Debt Collection Companies on Rise Shows How Far Brazil Has Sunk
This article is for subscribers only.
Investors know times are tough in Brazil when debt-collection companies are among the best investments.
That’s the case for Gavea Investimentos Ltda., the private-equity firm controlled by JPMorgan Chase & Co., which just made its first investment of 2015 after raising $1 billion last year. The Rio de Janeiro-based firm paid more than 100 million reais ($32 million) for a minority stake in Paschoalotto Servicos Financeiros, Brazil’s biggest debt collector, which counts companies such as Banco do Brasil SA and Volkswagen AG as clients, according to a person familiar with the matter.