Brascan the trailblazers for huge boom in private equity

By Gareth Chetwynd Rio de Janeiro

 10 June 2011 01:40 GMT

Private equity involvement in oil-producing companies in Brazil — as opposed to the now fashionable supply chain — began with investments by Brascan, a subsidiary of Brookfield.

Brascan created Brazil’s first oil and gas fund, FIP Petroleo Gas e Energia in 2002, attracting investment from Petros, the Petrobras pension fund, but was forced to delay its plans as the political pendulum moved toward shoring up Petrobras’ dominance rather than opening up new opportunities.

In 2007 Brascan Energy Fund hooked up with a group of Canadian investors who, as Brasoil, had signed a memorandum of agreement with Brazil’s Queiroz Galvao and needed funds to complete the acquisition of minority stakes in offshore oil and gas ­assets.

Brascan was joined by Goldman…

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