2023-10-14 22:01:52
Participation Investment Funds are different from most investment funds that we find on the market. One FIP You can buy shares in publicly traded companies, convertible debentures, subscription bonuses, but you can also invest in privately held companies.
In general, the objective of an FIP is to participate in the decision-making process of the companies in which it invests. The fund, therefore, aims to gain influence in defining the strategic policy and management of the companies that are part of its portfolio.
In the Brazilian market, PFIN11 is one of the main FIPs available to qualified investors. Want to know more regarding this Equity Investment Fund? So continue reading and discover the PFIN11!
Understanding Participation Investment Funds
Before explaining regarding PFIN11, it is important to understand in detail what a Participation Investment Fund is. A FIP, as well as others investment fundsworks as a kind of condominium, in which investors come together to invest towards the same objective.
There is the presence of three main agents, which exist in any type of fund. Are they:
- the shareholder, who is the participant (investor) who purchased shares in the fund;
- the administrator, which is the institution that sets up the fund and approves its regulations;
- the manager, who is responsible for using the shareholders’ resources in the fund’s investments.
It is also worth noting that each shareholder receives income in proportion to the number of shares they own.
FIP categories
In FIPs, resources are invested in open and closed companies or limited companies in the development phase. Equity investment funds can be classified into 4 categories.
Are they:
- FIP-Seed Capital: aims to acquire participation in companies or societies with gross revenue of up to R$16 million per year;
- FIP-Emerging Companies: acquires participation in companies or limited partnerships with gross revenue of up to R$300 million per year;
- FIP-IE (infrastructure) / FIP- PD&I (research, development and innovation): focuses on the acquisition of securities issued by publicly or privately held corporations that create new infrastructure projects, intensive economic production in research or development and innovation in several priority areas of the Federal Executive Branch (basic sanitation, transport, energy, etc.);
- FIP – Multistrategy: allows investment in different types and sizes of institution.
These funds must keep at least 90% of their assets allocated to target assets. Furthermore, they can keep 20% of their capital in assets offshoreas long as they have the same economic nature as the FIP in question.
Among the categories mentioned, PFIN11 is a FIP-IE (infrastructure). Find out more regarding him below:
Perfin Apollo Energy (PFIN11)
Perfin Apollo Energia Fundo de Investimento em Participações em Infraestrutura is an FIP whose objective is to acquire assets and participate in the decision-making process of the companies in which it invests.
Traded under the ticker PFIN11, it is only aimed at qualified investors – as with any other FIP. This means that this fund is only available to investors with more than 1 million reais invested or duly certified financial market professionals.
As with other FIPs, Perfin Apollo Energia is constituted in the form of a closed condominium and investors’ shares are only redeemed at the end of the fund’s duration – or in the event of a resolution on its liquidation at a shareholders’ meeting.
Therefore, if the investor wishes to recover his money, he must sell his shares on the secondary market.
PFIN11 debuts on the stock exchange
After making an IPO (initial public offering) of R$1.005 billion, PFIN 11 debuted on the Brazilian stock exchange on January 20, 2020. The fund’s shares were offered at R$104.76 each and reached the value of R $125.00 in the first trading session.
Being an investment modality only aimed at qualified investors was a requirement of the Securities and Exchange Commission (CVM) for the FIP PFIN11.
With the launch of Perfin Apollo Energia Fundo de Investimento em Participações em Infraestrutura, the number of FIPs listed on the Brazilian Stock Exchange (B3) reached thirteen – until the date of its launch, at the beginning of 2020.
Getting to know FIP PFIN11
Managed by BTG Pactual – the largest investment bank in Latin America, PFIN11 aims to invest in financial assets in the electricity sector, in the areas of transmission, centralized wind and solar generation and distributed solar generation – respecting the limit of 70% of its net worth invested in transmission assets.
The Perfin Apollo Energia FIP-IE currently contains target assets totaling around 2,123km of power transmission lines (100% of assets), of which only 16.4% are in the operational phase. As you saw, the fund is new – having been started in January 2020.
The management fee charged by the FIP is 0.6% per year on the fund’s net assets or its market value. The one with the highest value will be used and will be readjusted annually according to the IGP-M variation of the previous year.
A little regarding the FIP PFIN11 manager
To participate in PFIN11, the investor must purchase at least 10 shares. The distribution of income to fund shareholders must occur at least every six months. Management is the responsibility of Perfin Investimentos.
Ralph Rosenberg, founding partner of Perfin, highlights that this fund was created to provide alignment between shareholders and the manager. According to him, the partners commit to holding around 3% of the funds’ shares. Therefore, in the case of new issues, they must maintain the proportion of their investments.
Perfin Investimentos is a management company founded in 2007. It can be divided into two main fields of activity:
- area of asset management: manages investment funds and focuses on investing directly in companies through equity funds and equity investment funds;
- wealth management area: responsible for managing clients’ assets.
Currently, Perfin has more than R$12 billion under its management. It was in 2016 that Perfin’s investment committee found an opportunity in the electricity transmission sector, initially investing in equity funds.
At the time, it was identified that this sector was promising and had attractive returns, with the possibility of controlling risks and little competition. In this way, Perfin’s Co-investments sector emerged.
About the FIP PFIN11 sector
Thus, a consortium was created with Alupar – a group that has been operating in the transmission sector for over 20 years – to participate in the transmission auction held in October 2016. From then on, Parfin began to operate in the electrical energy sector through participation investment funds.
Since that year, around 7 funds focused on electricity have been set up – further strengthening the manager’s experience in this regard.
The electricity sector is capital intensive, has a long maturation period and growing demand. Brazil has a large energy consumption, with a large quantity and predominance of hydroelectric plants, high potential for wind and solar energy and a system that allows the exchange of energy between the states of the Federation.
The energy generation sector requires authorization or concession from the public authorities to enter the electrical system as a new company. Such authorization can be obtained through auctions and the generator can sell its energy in both the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL).
In the transmission sector, the concession must be obtained at auction to obtain the concession for a new project. In this case, the transmitter’s revenues are made up of charges and use of the transmission system paid by those who use the basic network, such as generators, distributors and large consumers.
ANEEL
Distribution is a regulated monopoly. Companies that distribute must enter into concession contracts with ANEEL. Distributors are remunerated with rates that take into account the purchase of electricity and the transmission and distribution service.
In fact, ANEEL is the regulatory body in both the generation and energy transmission and distribution sectors. And BNDES works as a financier for the projects.
In the commercialization segment, the supplier mediates purchase and sale transactions between generators and free consumers.
Fund income
Income from the PFIN11 Fund is exempt from Income Tax for individuals. Furthermore, it is worth mentioning that gains from the sale of shares are also exempt from this tax.
According to Ralph Rosenberg, founding partner of Perfin, the entire dividend flow in this fund goes to investors. Therefore, it is an investment that may be suitable for those looking for passive income with tax exemption and possibilities of greater liquidity in relation to other investments – such as a debenture, for example.
FIP Portfolio
FIP PFIN11 has a very diversified portfolio, consisting of six energy transmission lines located in the following states of the Federation: Bahia, Minas Gerais, Espírito Santo, São Paulo, Rio de Janeiro and Mato Grosso.
According to Rosenberg, the assets that are part of the PFIN11 fund portfolio are already operating or close to operating.
Is it worth investing?
In short, as it is an investment fund that invests in companies in the energy sector – more particularly in the transmission sector, the PFIN11 fund can be a good alternative for those who want to expose themselves to this niche market or wish to have passive income. over the years.
Furthermore, it is worth remembering that the distribution of dividends in this fund is not linear. Therefore, it is understood that PFIN11 should only be considered as a long-term investment.
It is also important to remember that, as this type of investment is classified as variable income, it is essential that you know your objectives – and, above all, your investor profile – before choosing an FIP or any other type of investment in funds.
Additionally, make sure you fall into the qualified investor category to be able to invest in an FIP. Keep in mind that this type of investment is exclusive to this type of investor.
Furthermore, it may be interesting to assess the level of risk of this investment compared to other investments, such as: debentures, real estate funds and shares. This analysis is important to define whether the modality may be suitable for your objectives, your portfolio and your level of risk tolerance when investing.
A summary of the FIP PFIN11
Does this FIP seem interesting to you? So check out this brief summary with some of the main information we brought in this complete post regarding the PFIN11 Participations Investment Fund!
Name: Perfin Apollo Energia FIP
Ticker: PFIN11
Fund objective: acquisition of target assets, participating in the decision-making process of the companies in which it invests. The fund must keep at least 90% of its net worth invested in target assets.
Target Audience: only qualified investors (those who have more than 1 million reais invested or have recognized certifications to work in the financial market).
It may be interesting for: investors who have greater risk tolerance (thrown profile or aggressive) and who want to have passive income in the long term.
Administration and management fee: around 0.6% per year on the fund’s net assets or its market value.
Distribution of results: must be distributed at least every six months.
Minimum application: 10 shares.
Conclusion
Finally, PFIN11 is a Company Equity Investment Fund. It is a fund with very particular characteristics that are less common than the most popular investment funds among investors.
Despite this, FIPs can be interesting options for qualified investors who want to diversify their portfolios. And, for this reason, if you are a qualified investor, it may be worth knowing the opportunities available on the market.
Do you want to know more information regarding PFIN11 and learn regarding other FIPs available on the Brazilian market? Then contact us and count on our help to choose the best investments for your profile
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