Responsible investing has been part of our DNA from the outset.

The Serra da Bocaina is home to one of the remaining reserves of Brazil’s Atlantic Forest, encompassing a delicate and complex ecosystem. In the same spirit, we believe our investment decisions must reflect our responsibility to society and the complex ways in which they affect all stakeholders.

Our robust approach to ESG investing mitigates risk and creates value for our portfolio companies and investors.

Our Pillars

Excellence is non-negotiable

Understanding our role in society and our responsibility to all stakeholders

Collaboration builds long-term partnerships

There are no shortcuts

Pride in being part of a high-performing team

Hard work and well-designed processes

Delivering on our commitments

Investment Philosophy

1

We value intuition, but base our decisions on facts and data

2

Market cycles must be respected

3

Recognizing the limits of our knowledge

4

Partnering with the right people is key to success

5

Diversification builds resilience and should be used extensively

Strategies

Focus on Infrastructure

Tax-Incentivized Debentures

Bocaina Capital’s Tax-Incentivized Debentures strategy invests in debentures eligible under Law No. 12,431 through FI-Infra funds, focusing on high-credit-quality assets for retail and institutional investors.

Income tax exemption for individual investors, subject to the rules applicable to FI-Infra funds
Hedged and unhedged structures
Open-ended funds, exchange-listed funds or funds registered with CETIP

Bridge Lending

Through its Bridge Lending strategy, Bocaina Capital meets funding needs arising from temporary cash flow mismatches throughout a project’s life cycle.

Typical maturities of 18 to 36 months
Capturing premiums on assets without tax incentives
Flexible, proprietary structuring

High Yield

The High Yield strategy focuses on more complex transactions with higher return potential across different levels of a project’s capital structure.

Investments in subordinated debt, mezzanine debt and quasi-equity
Potential for kickers and additional premiums
Structures tailored to each project
Focus on exclusive transactions

Competitive Advantages

Bocaina’s Expertise

1

A team with a background and expertise in project finance, focused on each project and its security package, with greater depth and specialization than traditional credit management teams
2

Knowledge and experience in identifying opportunities and mitigating credit risks in infrastructure projects
3

Access to more complex, differentiated assets with higher return potential
4

Close portfolio monitoring

Partnerships with Arrangers

1

An extensive industry network of arrangers, distributors and issuers
2

An independent and neutral position, outside any financial conglomerate, supports broad market access to identify opportunities aligned with the fund’s profile
3

Bocaina’s involvement in the early stages of structuring enables tailored solutions for issuers and competitive proposals with differentiated risk-return profiles

Debentures Beyond the Market’s Radar

1

A focus on smaller issues, ranging from R$50 million to R$150 million, offers better return opportunities
2

Access to exclusive assets originated and structured in-house to match the Bocaina Infra Fund’s profile, allowing it to be the sole or lead debenture holder in issues offering differentiated premiums

Risk-Return Profile with ESG Advisory

1

In-depth analysis of projects and security packages, capturing premiums from the issuance of the debentures
2

Capturing origination, structuring, duration and liquidity premiums
3

Inflation-linked income, targeting the yield on an NTN-B with a duration similar to the portfolio’s, plus a spread of 1.5 to 2.5 percentage points
4

Robust ESG analysis to mitigate risks and create value for society

Investment Process

01

Origination

An extensive network of relationships with infrastructure investors enables proprietary origination. The team’s long-standing relationships with Brazil’s leading banks and advisory boutiques place Bocaina at the center of deal flow.

02

Preliminary Assessment and Pricing

A prompt assessment of the opportunity supports the committee’s decision on whether to proceed. Key considerations include the target asset’s business model, revenue and cost stability, the sponsor’s experience and compliance.

03

Due Diligence

A process designed to identify efficiency gains and mitigate risks. Bocaina assesses the financial aspects of the transaction in-house, with support from specialist consultants and law firms where appropriate.

04

Investment Committee

Chaired by the Managing Partner, the committee assesses the firm’s risk appetite for the proposed transaction. Considerations include the transaction’s risk profile, alignment with the firm’s standards, the adequacy of the security package and conditions precedent.

05

Transaction Execution

Transaction documents are negotiated in line with market best practices in collaboration with specialist law firms. Particular attention is given to security documentation and the perfection of security interests.

06

Monitoring

Monitoring is as important as approving new investments. We track key indicators and common pitfalls observed in similar projects to anticipate problems and enable preventive action. Our analyses are comprehensive and transparent.

ESG Integration Throughout the Process

Screening against the exclusion list, taking ESG factors into account.

Classifying and assessing investments according to their ESG risk level, and evaluating investment appetite in light of this assessment.

In-depth analysis of ESG risk drivers and opportunities to create value.

Investment decisions informed by the results of the ESG analysis.

Where applicable, supporting the portfolio company in developing an ESG action plan and targets.

Monitoring ESG initiatives

About Bocaina