Bradesco's Private-Credit Expansion and Surge in Asset Management Inflows

Bradesco Asset Management, a leading Brazilian fund manager, has doubled its private-credit team as credit funds experience significant growth amid a booming corporate debt market, bucking a trend of declining interest in other investments. With 45 billion reais in net inflows so far in 2023, the company's credit products account for almost all of the inflows. The expansion of credit funds is also supported by tax regulation changes and high corporate debt issuance. Bradesco aims to reach 1 trillion reais in assets under management by 2025, with a focus on launching new structured funds and hiring key personnel, such as Ace Capital co-founder Gabriel Trebilcock, to strengthen their credit trading capabilities.

In a noteworthy development, Brazilian fund manager Bradesco Asset Management has expanded its private-credit team, doubling its size in response to the significant growth of credit funds [1]. This strategic move comes amid a thriving corporate debt market in Brazil, which has experienced substantial net inflows, totaling 45 billion reais, in 2023 alone [1].

Bradesco's focus on credit funds is part of a broader trend in the Brazilian asset management industry, fueled by favorable tax regulation changes and high corporate debt issuance. Consequently, credit products account for nearly all of the net inflows, making up a considerable portion of Bradesco's assets under management [1].

The expansion of credit funds at Bradesco is also in line with CEO Joaquim Levy's ambitious goal of reaching 1 trillion reais in assets under management by 2025 [1]. To achieve this, the firm plans to launch new structured funds and hire key personnel, such as Ace Capital co-founder Gabriel Trebilcock, to strengthen their credit trading capabilities [1].

While Bradesco's focus on credit funds represents a departure from its traditionally conservative asset allocation, which heavily favored fixed-income securities, the company's recent performance and client satisfaction indicate that this strategic shift is well-timed and successful [1]. In 2022, Bradesco attracted 28.9 billion reais in new assets, surpassing all other Brazilian managers, and its fixed-income assets, which account for the bulk of its assets, grew by 30.2% [1].

References:

[1] Institutional Investor. (2023, February 24). Portfolio: Bradesco Asset Management Sheds Its Stodgy Reputation and Grows. https://www.institutionalinvestor.com/article/2bsu6ty0vu3v8of9oa48w/portfolio/bradesco-asset-management-sheds-its-stodgy-reputation-and-grows