Consolidation in the investment advisory market has slowed down in recent years, but should accelerate in 2025, projects Guilherme Champs, a lawyer specializing in corporate law and focused on the financial market.
The office he founded in 2018 has already worked on more than 300 operations since then. Among them, , a deal involving assets of R$65 billion, closed last year.
Champs is currently working on four negotiations between investment offices that total approximately R$20 billion under custody.
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“It is a natural movement of a market that has expanded and is now consolidating itself into a natural selection of players”, explains the lawyer, who refers mainly to mergers and incorporations among investment advisors. “This trend should continue to increase because today the business advisory services are increasingly complex, and being a good advisor does not necessarily mean that you are a good businessman”, he observes.
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Business projections in 2025
Although ongoing, the consolidation movement in the investment advisory market has lost momentum in the last two years, says Champs, who attributes the cooling of the trend to the macroeconomic scenario.
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“The high interest rate scenario harms higher risk investments and buying a company is a business that involves risk”, he explains. “[Os negócios] that we had were transactions that were already contracted and had their conclusions”, he contextualizes.
But even with interest rates remaining at high levels, the lawyer reports a significant change in mood this semester and is betting on a more positive scenario for mergers and incorporations between investment offices next year.
“From June to now, there has been an improvement in the business environment and we have noticed an increase in the number of confidentiality agreements (first step towards new transactions) here at the office”, he reveals. “We feel that 2025 tends to be a better year and there is a market expectation in this regard”, he reflects.
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For Champs, the change in mood at the turn of the semester may have been related to the tendency to cut interest rates in the United States – which ends up serving as a reference for other markets. At the time, he also observed a less tense environment in the political field.
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Consolidation required
Regardless of interest rates and at a greater or lesser pace, Champs sees the consolidation of investment offices as inevitable given the expansion of the segment itself.
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“Considering that, sometimes, an operation is very strong in one type of product and needs to gain strength in the more competitive market”, he explains. “In this way, this operation will end up joining with another that is complementary to gain scale”, he concludes.
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