At a time of high pressure in the credit market, JGP wants to expand its operations in this segment in search of product differentiation.
The credit area of André Jakurski’s manager is making a joint venture with L6 Capital, a boutique in Rio de Janeiro specializing in M&As and debt transactions.
“This market has cycles. We need to be able to structure operations and generate value for clients in different periods,” Alexandre Muller, the partner in charge of JGP Crédito, told Brazil Journal.
JGP Crédito has R$6.5 billion under management.
“Few good operations structured by banks reach us today,” said Muller. “I’m not talking regarding top-tier credit, but differentiated assets.”
L6 originates around R$ 250 million in credit operations per year – a value that, in the view of the partners, should increase with the integration between the companies.
“We can be more assertive and carry out operations knowing the demand on the funds side,” says Fernando Kunzel, the partner at L6 who will lead the new company, called JGP L6.
The new company will not structure operations just for JGP. When working for JGP, you will not earn a distribution fee. “The idea is that the spread is passed on to structured funds through higher rates of return,” said Muller.
“L6 helps us on this front and we help by providing scale and synergy for the growth of M&A activities.”
Before founding L6 in 2015, Kunzel worked at Lloyds, Citi and BTG Pactual, where he stayed from 2001 to 2009. “I started in credit, which is the area where we really know companies, and migrated to M&A. ”
L6 operates mainly in the middle market, and has advised companies such as startup fly hotels and Neorede Telecom, an ISP.
Muller and Kunzel see room for growth in the infrastructure, agribusiness, real estate and ESG segments – areas in which JGP has recently started to operate – in addition to special situations.
Unlike much of the market, Muller has a more “constructive” view of the credit market. “We are on the cusp of a narrative shift.”
For him, there may be more problems in “zombie companies”, companies whose financial situation was already complicated and worsened with the high interest rates.
“On the other hand, this recent wave of capitalization of solid companies is an important sign, which shows confidence in the recovery of companies with solid models,” said the manager.
Giuliana Napolitano