HMC Capital announced a partnership with Neuberger to distribute the American asset manager's funds in Brazil. The agreement includes Neuberger's full range of products, from liquid funds to those dedicated to illiquid assets, such as private equity.
With approximately US$567 billion under management and a presence in 26 countries, Neuberger is one of the world's largest independent asset managers . Founded in 1939, the firm manages equity, fixed income, private markets, real estate, and multi-market portfolios for global institutions, advisors, and individuals.
The partnership in Brazil is an extension of a relationship that already existed in other Latin American countries, such as Chile, Colombia, and Mexico, where HMC has been distributing Neuberger funds for at least a decade. Now, the arrival in the Brazilian market reflects a decision by the American asset manager itself to cover the country more actively.
“The partnership with HMC marks a structured commitment to the market — combining Neuberger’s global investment platform with HMC’s local knowledge and institutional relationships,” said Carolina Collia, Neuberger’s relationship manager.
Present in eight countries, HMC Capital operates in Brazil as a consultant and structurer of access vehicles for international asset managers through its subsidiary Gama Investimentos. In Brazil, HMC represents more than 20 asset managers , including Bridgewater, Oaktree, Schroders, and MAN.
The initial focus of the partnership is on institutional investors — pension funds from public and private companies (EFPCs) and their own pension schemes (RPPS) —, as well as family offices, wealth managers, banks, and investment platforms.
Although the partnership covers the entire Neuberger portfolio, HMC's initial efforts will focus on three strategies: one equity fund and two global credit funds. This choice reflects both the profile of the target investors and the current market climate—with international private credit gaining increasing traction in the portfolios of Brazilian institutional investors.
The expansion of the partnership comes at a time of increased interest from pension funds in offshore investments . According to ANBIMA data from April, the total amount allocated to offshore funds by pension funds from public and private companies and public pension systems went from zero to R$ 164 million in one year.
According to Rodrigo Aloy, partner and head of strategy and research at HMC Capital, this trend is expected to intensify. "The great interest from foundations, at least in the last 12, I would say even 24 months, has been in global credit," he said. "And we don't see this trend stopping, at least in the next 6 to 12 months."
The logic is reinforced by the interest rate differential between Brazil and the United States. For investors accessing the market via a local vehicle with currency hedging—a structure that HMC intends to set up for pension funds and public pension funds—the return automatically increases due to the cost of the hedge, which incorporates the difference between the Brazilian and American base rates.
HMC's biggest bet to meet the demand for credit is the Neuberger Global Flexible Income fund, focused on the international high-yield market. The fund has been yielding over 7% per year in dollars, reaching close to CDI+2% and CDI+3% when hedged.
Aloy explains that, in a context where global interest rates were low and American stock markets delivered returns far superior to local ones, the international exposure of Brazilian pension funds was built almost exclusively in global equities. But the interest rate hike cycle that began in 2022 changed the equation.
With basic interest rates in developed countries above 5% and high spreads, global credit began to offer yields compatible with the return expectations of emerging market investors — and, hedged, became competitive against the CDI (Brazilian interbank deposit rate).
“International investments cannot be treated like stocks. They need a balance — something that protects the investor from a drawdown , that manages to add value, that is more balanced from a risk-return perspective,” says Aloy.
One of Neuberger's arguments for attracting Brazilian institutional investors is its capital structure. Without a controlling shareholder or external shareholders, the asset manager says it makes decisions based exclusively on client performance. "For pension funds that manage long-term liabilities, this type of stability is extremely important," says Collia.
In its distribution to wealth management and family offices, HMC aims to give greater visibility to Neuberger's emerging market hard currency debt fund, which has a significant weighting in Asia.
According to Aloy, Brazilians tend to prefer emerging market debt because they already have a concentration in domestic securities, and the strategy can be complementary. “The Brazil-Latam dynamic is very different from Eastern Europe, which is very different from Asia. Brazilians have always treated this universe as homogeneous, but it is extremely heterogeneous.”
In the equity segment, the prioritized fund is the Global Equity Megatrend, which, despite its name, does not follow short-term trends. The strategy carries structural theses identified by the investment team over time, with a GARP philosophy — Growth at a Reasonable Price — seeking companies with growth potential without paying high multiples. Its distribution will focus on institutional channels, banks, and platforms.
