• This article provides insights into Brazil’s economic and financial landscape and explains why it is one of Latin America’s leading powers, according to the III Annual Report of the Asset Securitization Sector 2025-2026.
• The content is aimed at asset managers and investors interested in understanding Brazil’s role in the global economy.
• FlexFunds offers an asset securitization program designed to enhance the distribution of various Brazilian and international investments. For more information, please do not hesitate to contact our experts.

With the largest economy in Latin America and a prominent presence on the global stage, Brazil continues to stand out as a multifaceted power.

Its economic base is broad and diversified, supported by strategic sectors such as agribusiness, extractive industries, services, and a growing financial infrastructure.

Brazil, a comprehensive power with challenges

Agribusiness, in particular, keeps the country among the world’s leading exporters of commodities such as soybeans, corn, beef, and sugar. Agricultural performance is driven by productivity gains, technological innovation, and international scale.

However, macroeconomic challenges remain. Inflation, although under control compared to past decades, continues to be sensitive to both external and domestic shocks.

The Central Bank of Brazil, through the Selic rate, acts proactively to anchor price expectations and ensure monetary stability, albeit in an environment of historically high interest rates.

On the fiscal front, the country faces structural constraints that require consistent progress on reforms—such as tax and administrative reforms—to rebalance public accounts and create a more predictable investment environment. The complexity of the tax system remains one of the main obstacles to competitiveness.

Brazil’s financial sector stands out

At the same time, Brazil’s financial sector is robust and innovative. Capital markets are expanding, driven by fintechs, digitalization, and growing interest from both local and international investors.

Brazil has also made advances in renewable energy, infrastructure, and technological innovation, consolidating its position as a relevant destination for global capital.

Despite a sometimes unstable political landscape, democratic institutions continue to function and operate, contributing to the country’s economic resilience.

“In short, Brazil is a market of risks but also of extraordinary opportunities for those who know how to navigate its cycles and understand its internal dynamics,” said Daniel Klein, Managing Partner at Fortune Wealth Management, in the III Annual Report of the Asset Securitization Sector 2025-2026.

“In a global context of low interest rates and geopolitical instability, Brazil stands out for offering a rare combination of positive real returns and exposure to strategic sectors with solid fundamentals, including private credit and agribusiness,” he added.

The high Selic rate, combined with easing inflation, creates unique opportunities in the private debt market.

The role of securitized products in Brazil

Medium- and large-sized Brazilian companies—many of them with healthy balance sheets and operations in defensive sectors—offer issuances with attractive spreads and low credit risk, especially when structured with real guarantees or linked to recurring revenues.

Foreign institutional investors can access these assets both locally and through offshore vehicles, such as ETPs.

At the same time, Brazilian agribusiness continues to be a key engine of growth and attractiveness. The country is a global leader in the export of grains, proteins, and agricultural products, and its competitiveness is driven by ongoing productivity gains, technological advances in the field, and growing international demand.

Projects related to agribusiness, storage, logistics, and ESG solutions in rural areas attract foreign capital and represent long-term opportunities with consistent returns.

By combining monetary stability, solid institutions, and highly efficient sectors, Brazil reaffirms its position as a strategic destination for investors seeking geographic diversification and risk-adjusted returns in emerging markets.

At a time when Brazil is once again in the spotlight of major investors, the search for efficient vehicles that connect international capital with local assets is becoming increasingly relevant.

In this context, an ETP (exchange-traded product) emerges as a sophisticated and functional solution to facilitate access to strategies focused on private credit and agribusiness—two pillars with solid fundamentals and consistent prospects in the country.

By transforming a portfolio of assets into standardized, auditable, and distributable instruments, an ETP adds value on several fronts: it simplifies allocation, expands the universe of eligible investors, and offers greater operational agility.

In addition, it allows projects with limited visibility outside the local market to become part of the global product range, with greater transparency, governance, and scalability.

“Particularly for assets strongly anchored in the real economy—such as obligations of agribusiness companies or stakes in logistics projects linked to the field—the ETP acts as a structured, reliable, and replicable channel, capable of translating Brazil’s potential into investment solutions aligned with the demands of international markets,” explained Klein in the III Annual Report of the Asset Securitization Sector 2025-2026.

FlexFunds has developed a more agile solution to overcome the bureaucratic barriers faced by foreign investors in Brazil, especially those required to use account 4373 (for non-residents). Instead of following the traditional route of opening an offshore fund and transferring funds through this account, FlexFunds has implemented a securitization process through ETPs. Thanks to this innovative solution, Fortune Wealth Management—a manager with a presence in Brazil, Switzerland, and Israel—raised more than R$ 40 million for its Fortune Credit Opportunities fund, enabling it to connect its international client base with Brazilian products in a more cost-efficient way.

“This alternative allowed us to save a significant amount of time in the process. If we had opened a feeder fund to purchase units of our local fund, for example, it would have taken between six and eight months. With FlexFunds’ solution, the timeframe was six weeks,” Klein stated. “And we achieved cost savings of more than 50% compared to traditional routes, which until then were the only solutions used by Brazilian asset managers.”

In summary, the ETP is more than just a vehicle. It is a bridge between the strength of local assets and the sophistication of global capital.

In a scenario marked by high complexity—but also significant opportunities—having experienced local partners is essential to navigate the Brazilian market with confidence.

To gain deeper insights into the global asset management industry, you can download the III Annual Report of the Asset Securitization Sector 2025-2026, prepared by FlexFunds in collaboration with Funds Society.