Pension funds and asset managers expanding their presence in the country, particularly in infrastructure, renewable energy, agribusiness, and technology

By Alessandra Taraborelli

Brazil has been consolidating itself as a promising destination for Canadian investment funds, driven by a dynamic market, a diverse range of strategic sectors, and an increasingly secure legal environment for foreign investors. With a diversified economy and growing opportunities in infrastructure, technology, renewable energy, and agribusiness, the country stands out as a strategic choice for long-term investors.

In this context, three major Canadian pension funds have distinguished themselves through their operations and significant investments in the region: CPP Investments Board, Caisse de dépôt et placement du Québec (CDPQ), and Ontario Teachers’ Pension Plan (OTPP). In addition to these investment vehicles, Brookfield also stands out as a leading Canadian global asset management firm, overseeing more than 2,000 investments worth over USD 1 trillion worldwide in 2023.

According to a report by the Intelligence Division of the Brazil-Canada Chamber of Commerce (CCBC), CPP Investments manages approximately USD 26.71 billion in Latin America, accounting for 5% of its global portfolio. Nearly half of this amount is allocated to Brazil, underscoring its strategic importance. CDPQ has already invested BRL 25 billion in the country, representing approximately 2% of its global portfolio, and plans to allocate between CAD 4 billion and CAD 5 billion (approximately USD 2.94 billion to USD 3.67 billion) by 2027.

OTPP, in turn, has invested over CAD 20 billion (approximately USD 14.7 billion) in Latin America, with a portion of this capital directed to Brazil. Brookfield, with a history spanning over a century, has maintained ties with Brazil since its inception when it founded São Paulo Tramway, Light and Power Co. in 1899. Since then, Brookfield’s presence in the country has evolved into asset management totaling BRL 175 billion.

Another factor contributing to this growing interest is the fact that South America’s largest economy has been making progress in creating a more secure legal environment for foreign investors. Structural reforms, such as the modernization of the legal framework for concessions and privatizations, along with measures ensuring exchange rate stability and contract protection, have played a key role in this development.

Sectors attracting canadian investors

Canadian investment funds seek opportunities in sectors that combine growth potential with legal security. These include:

• Infrastructure: Brazil has an extensive program of concessions and privatizations, including highways, ports, and airports, creating opportunities for institutional investors looking for long-term assets with stable returns.
• Renewable Energy: As a global leader in clean energy, Brazil stands out in hydroelectric, wind, and solar power. Canadian companies with expertise in the sector can benefit from strategic partnerships and expansion projects.
• Agribusiness: As one of the world’s largest agricultural producers, Brazil offers significant opportunities for innovation and technology investments, including biotechnology, agricultural equipment, and logistics infrastructure.
• Technology & Innovation: With a growing startup ecosystem, Brazil provides a favorable environment for investments in fintech, healthtech, and agritech, sectors that have been attracting foreign capital.

For Brazilian companies looking to attract the attention of Canadian funds, investing in transparency, governance, innovation, and sustainability is essential. Additionally, partnering with organizations like CCBC can provide crucial support, offering networking opportunities, legal assistance, market intelligence, and brand promotion, among other benefits.