Everything You Need to Know About Brazilian Private Equity: Part II

Financial Transparencythe current financial crisis was the simple annihilation
This is perhaps the mother of all issues whenand obliteration of trust. Investors lost trust in the
considering the more common challenges infinancial system, they lost trust in bankers, ratings
successfully raising private equity capital. Andagencies, federal regulators, the words
it’s not an issue solely relevant to Brazil and“collateral” and
or Latin America, as it is an issue facing any“obligation,” and in the American
early-stage or middle-market company worldwidedream of home ownership. Even “In God We
looking to raise capital via the private equity market. ItTrust” lost plenty of strength and credibility as
is the subject of much frustration among private equitythe US greenback fell to and continues to trade at
professionals and company executives alike, andhistoric lows. Call it “The Great
perhaps the single most common reason why mostRecession,” “The Great Depression
potential transactions reach an unfortunate and2.0,” or just the global financial system going to
untimely death.hell in a hand basket.
Let’s first remember that a principal factor of