By Brazil Stock Guide – Carbono Oculto funds are at risk of liquidation after administrators Trustee DTVM Ltda. and Banvox DTVM Ltda. resigned from managing 15 vehicles under investigation for alleged money laundering and asset shielding, according to Estadão’s E-Investidor.
Extraordinary general meetings (EGMs) are scheduled from Sept. 11 to 15 for investors to appoint replacements or shut down the funds. If no new managers are chosen within 180 days, the assets will be liquidated, unless Brazilian courts impose a freeze.
Trustee steps down on compliance concerns
Trustee said it had already withdrawn from Albuquerque FIM, Olímpia FIM Crédito Privado, Vintage FIM and Ártico FIM before the police raid in São Paulo’s Faria Lima district, citing compliance risks. These funds were sole investors in the products targeted by the probe. The resignation automatically halted their transactions.
More resignations follow
On Aug. 29, a day after the $Carbono Oculto operation, Trustee also gave up management of Pegasus FIP Multiestratégia, Paraibuna FIP Multiestratégia and 10 real estate funds, including FII Vancouver and Black Bridge FII.
Banvox resigned from Los Angeles 01 FII (now Lucerna FIIs) and Derby 44 FIM Crédito Privado (WELS).
Judicial oversight
Former Attorney General Fábio Medina Osório noted that court rulings may override shareholder votes:
“Although the EGM has the power to deliberate on liquidation, that decision will be subordinated to any judicial order restricting the assets.”
Impacted funds
Other affected funds include FII Enseada, Green Eagle FII, Bucarest FII, Arion FII, Minesotta FII, Pinheiros FII, Olsen FII and FII Toronto. All were notified to CVM at the end of August, with effective resignations in mid-September.
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