Nasdaq-listed BR Partners is sharpening its focus on Brazil’s infrastructure and energy sectors, leveraging its independent advisory model to guide both domestic and international investors through a rapidly evolving market, according to an executive.

Co-founder and Managing Director Jairo Loureiro told this publication that the firm’s recent listing positions it to attract capital from international players that want to do business in Latin America’s largest economy where infrastructure demand far outpaces supply.

“Our model is that of a traditional investment bank advisory dedicated firm similar to independent firms that exist in United States like PJT [Partners], Moelis, Rothschild, or Lazard,” Loureiro said.

Founded in the aftermath of the 2008–2009 financial crisis by former Goldman Sachs and Citigroup executives Ricardo Lacerda and Loureiro, BR Partners has grown into the largest independent investment bank in Latin America, Loureiro said. Headquartered in São Paulo with an office in Rio de Janeiro, the firm employs around 200 professionals and operates across four verticals: M&A advisory, credit underwriting in local capital markets, structured products and derivatives, and multi-family wealth management.

It listed on Brazil’s B3 exchange in 2021 to strengthen its balance sheet and followed with a 2023 offering targeting early investors.

Infrastructure and energy at the core

Infrastructure and energy are among BR Partners’ top sectors, supported by a dedicated team. The firm has advised on landmark transactions including representing the sellers of a minority stake in the 3,568 MW Santo Antônio hydroelectric plant; BTG Pactual in the sale of a gas-fired generation portfolio; the USD 3bn sale of Cemig’s 45% stake in power generation company Aliança Energia; and the privatization of natural gas distribution companies ESGas and Sulgas.

Loureiro emphasized Brazil’s leadership in renewables and clean fuels, noting that the country’s geographic advantages—strong wind resources in the northeast and south, and high solar radiation—make it a regional powerhouse for the development of these modern technologies at scale.

However, transmission infrastructure has lagged behind generation, creating curtailment issues for renewable assets. “We’re seeing projects that used to be attractive four of five years ago now facing restructuring,” Loureiro said. “We are going through a difficult time for some renewables projects where the owners have made a significant investment, raised a lot of debt capital to fund those investments, and they have to go through the consequences of curtailment.”

Smaller developers with limited financial resources will be especially vulnerable, Loureiro said, with many likely to be consolidated by larger players over the next two to three years.

“The curtailment has affected those developers that operate in a region where the transmission infrastructure cannot support all the energy that is available during the peak time. There are players that are robust that only have one or two single assets there, which won’t be a big concern for these bigger groups,” he said. “However, the issue is with the smaller independent entrepreneurs that have raised capital with financial backers to start a new dedicated IPP with hopes of taking advantage of the cost/benefit of solar and government incentives. These smaller guys have very tiny operations and their financial support is limited. So, when curtailment hit them and then some of them had problems with the construction equipment and the hike in interest rates in Brazil, which has been brutal, it was a real perfect storm.”

BR Partners is anticipating a heightened level of M&A activity as creditors may take control of the more distressed assets and sell them to strategic consolidators. The firm’s recent work on the debt restructuring for Light, the embattled Rio de Janeiro electricity distribution company, underscores its role in navigating these kinds of transitions, Loureiro added.

Data centers and new demand profiles

Loureiro sees data centers as a growing force, especially in Brazil’s energy landscape. “Brazil has some of the largest data center developers in Latin America, like Ascenty, ODATA, Elea and Scala,” he said pointing to how power-hungry these facilities are. “Brazil can provide a cheap source of energy for the data center market, and I think that will help boost a new wave of investments, as well as providing a solution for the problem of excess generation and curtailment.”

The rise of hyperscalers and AI-driven compute demand is creating new opportunities for infrastructure developers, particularly in regions with renewable overcapacity. BR Partners is advising clients on how to align energy assets with digital infrastructure needs, Loureiro said.

International and domestic investor dynamics

International investors are playing a pivotal role in Brazil’s infrastructure buildout. Brookfield has invested over BRL 100bn (USD 18bn) in the country, while CPP Investments, CDPQ, GIC, and Macquarie are active across energy, ports, and transportation. “They have a firepower that is unbelievable in terms of what they’re doing here. They’ve got great, large local teams,” Loureiro said.

Chinese investors tend to pursue strategic investments tied to their national interests like supply chains related to mining, energy, and agriculture, while North American funds act more as financial investors, Loureiro said. European players dominate the port and transport sectors, with strong interest in airports and logistics.

Domestically, firms like Pátria, Vinci Partners, BTG Pactual, Itaúsa, Votorantim, IG4, Grupo Ultra, and Perfin are expanding their infrastructure strategies into sanitation, toll roads, and gas transportation. Recent deals include CMA CGM’s USD 2.8bn mega acquisition of the Port of Santos administration and the upcoming auctions for terminals, like STS10, which have attracted global shipping interest, according to Loureiro.

Capital constraints and policy challenges

Despite the momentum, Brazil’s infrastructure growth is constrained by high capital costs. “The cost of capital is super high so, if you hit headwinds, you can go bankrupt,” Loureiro said, adding that the country needs an even more aggressive expansion of infrastructure financing.

Public investment delays create both opportunities and challenges, particularly in transportation and sanitation. Loureiro noted that while government policy plays a role, project viability ultimately depends on financial structure and execution.

Loureiro said that BR Partners’ Nasdaq listing is not a signal of operational internationalization but a strategic move to attract global clients. “We’re not opening offices abroad—we prefer commercial partnerships with global institutions. The listing gives us credibility and visibility with international investors who are increasingly looking at Brazil.”

“I think there are a group of players in Brazil already that are either part of larger, diversified, industrial or financial players who have seen the depth of the infrastructure here is massive,” he added. “The names that I mentioned to you probably don’t all look at the same things, but together they cover the entire space in infrastructure.”