Brazil’s asset management industry has undergone a significant transformation this decade without a meaningful reduction in market concentration. Independent asset managers and investment platforms increased their share of assets under management from 32.2% in 2019 to 41% in August 2026, while bank-affiliated managers saw their share decline from 65.5% to 57.8%, according to an XP survey based on data from Brazilian financial markets association Anbima. Yet the ten largest asset managers still control 68% of assets in the sample, virtually unchanged from seven years earlier. The industry has become more diverse in both participants and products, but financial power remains concentrated.
High interest rates have accelerated this shift. With Brazil’s benchmark Selic rate reaching 15% in 2025, fixed-income investments began offering attractive returns, reducing investors’ incentive to take on the volatility of equity and multimarket funds — Brazil’s equivalent of multi-strategy investment funds. Independent managers responded by expanding into private credit and structured investment products. The share of these vehicles — including receivables funds, private equity funds, real estate funds and agricultural investment funds — rose from 22% to 34% of assets managed by independents and platforms between 2019 and August 2026, reaching R$1.43 trillion ($270 billion), nearly four times the initial amount. Over the same period, multimarket funds’ share of this segment fell from 35% to 21%.
But interest rates do not tell the whole story. The expansion of investment platforms has weakened banks’ traditional control over fund distribution, allowing independent managers to reach investors previously served primarily through bank branches. Meanwhile, the growth of private credit has created opportunities for firms specializing in loan origination, collateral assessment and financing structures outside traditional bank balance sheets. Exchange-traded funds (ETFs) represent another structural force: their assets grew 228% between December 2022 and August 2026. Together, these developments are reshaping the economics of asset management, placing greater value on scale, distribution capabilities and specialized expertise rather than relying exclusively on traditional active management.
The question is how much of this transformation will survive a decline in interest rates. A lower Selic rate could restore some of the appeal of equity and multimarket funds, reversing part of the recent shift in asset allocation. But it is unlikely to return the industry to its previous structure. Distribution networks, new investment products and credit-origination capabilities developed over several years will not disappear simply because monetary policy changes. That does not mean the new model is without risks. Structured funds can expose investors to liquidity constraints, borrower defaults and difficulties in valuing underlying assets, particularly during economic downturns. The real test for parts of the industry may come not during a period of high interest rates, but when credit conditions become less favorable.
Brazil’s investment fund industry reached R$11.53 trillion in assets in September 2026, a nominal increase of approximately 67% since the end of 2021. But size alone says little about competition or resilience. The next phase will show whether these new business models can deliver sustainable returns after costs and withstand a less favorable credit cycle. As scale and innovation reshape the industry, the question remains whether the balance of power has truly changed.
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