VZCZCXRO5989
RR RUEHRG
DE RUEHRI #0580 2951430
ZNR UUUUU ZZH
R 221430Z OCT 07
FM AMCONSUL RIO DE JANEIRO
TO RUEHC/SECSTATE WASHDC 4223
RUCPDOC/USDOC WASHDC
RHEHNSC/NSC WASHDC
INFO RUEHBR/AMEMBASSY BRASILIA 0597
RUEHSO/AMCONSUL SAO PAULO 5095
RUEHRG/AMCONSUL RECIFE 3380

UNCLAS RIO DE JANEIRO 000580 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR GREG MANUEL 
NSC FOR DAVID MCCORMICK 
EB/ESC JAMES EIGHMIE AND NEA 
NSC FOR FEARS 
 
E.O. 12958:N/A 
TAGS: EINV EFIN PREL BR
SUBJECT: INSTITUTIONAL INVESTORS LEARNING JOURNEY (IILJ) VISIT TO 
BRAZIL 
 
 
¶1. (U) Summary: From September 9-14, a group of pension and 
endowment fund managers, accompanied by Commerce DAS Ana Guevara, 
FCS and Treasury Brazil personnel, visited Rio de Janeiro and Sco 
Paulo on an Institutional Investors Learning Journey (IILJ).  The 
IILJ was organized by the Brazilian Venture Capital Association 
(ABVCAP) and Brazilian Industrial Development Agency (ABDI), and 
supported by Commerce ITA.  The group, which represented more than 
US$300 billion in alternative asset funds, came to learn more about 
the Brazilian market for private equity investing.  This visit is a 
deliverable under the Commercial Dialogue between Secretary 
Gutierrez and Minister Jorge, the next meeting of which will take 
place on October 11, 2007 in Brasilia.  End Summary 
 
¶2. (U) The delegation visited Rio from September 9-11.  Ambassador 
Sobel, who had been in the United States, returned specifically to 
accompany the delegation, since this visit was an important 
milestone to advance goals set in the Commercial Dialogue by 
Secretary Gutierrez and Minister Furlan in June 2006. 
 
SIPDIS 
 
¶3. (U) In Rio, the IILJ delegation participated in a macroeconomic 
briefing by the Treasury Attach, a meeting with Rio Governor Sergio 
Cabral, a cocktail hosted by ITA with Rio State Secretaries for 
Finance and Economic Development, as well as meetings with the 
Brazilian Development Bank (BNDES), the Brazilian SEC, and the 
Brazilian innovation agency (FINEP).  The Ambassador hosted a dinner 
for the IILJ participants, which provided an opportunity for 
dialogue with representatives from major U.S. investment banks in 
Brazil.  On September 11, the group visited the Catholic University 
of Rio (PUC) for a briefing on a new business incubation/private 
equity initiative and participated in a roundtable with high-ranking 
executives from the major Brazilian pension funds. 
 
¶4. (U) While in Sco Paulo from September 12-14, the delegation 
visited the Sco Paulo Stock Exchange (BOVESPA), the Commodities and 
Futures Exchange (BMF), and held meetings with asset management 
companies.  The group also attended presentations on public equity 
and private equity investments in Brazil, and concluded its visit 
with a meeting with the President of Brazilian Central Bank Henrique 
Meirelles. 
 
¶5. (U) The investors were amazed at the opportunities and rapid 
growth occurring in Brazil, and several stated that they planned to 
return.  There was a great deal of interest in possibilities 
presented for private equity. 
 
¶6. (U) This visit will be presented as a deliverable during the 
upcoming Commercial Dialogue between Secretary Gutierrez and 
Minister Jorge on October 11, 2007 in Brasilia.   We expect to see 
an increase in visits by US investors, and an eventual increase in 
US investment in Brazil - particularly in private equity - as a 
result 
 
MARTINEZ