Before investing in a Fiagro (Investment Fund in Agroindustrial Productive Chains), the investor must observe points that go beyond the promised profitability. This is because, according to Paulo Mesquitapartner of Rizathere are several essential criteria to be taken into consideration, especially thinking about security.
He was the guest in the third episode of the root of the business – partnership between Infomoney and The Agribiz, its road between the countryside and Faria Lima.
According to him, the first thing to observe is whether Fiagro has geographical diversification: “Whether it is more pulverized or not.” In addition, what guarantees are linked to the operations of that fund, followed by knowing the governance of companies being invested by that fund and, primarily, the historical.
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Experience and caution
The executive points out that Riza has hardly has a portfolio, for example, a producer who has not been in the market for a few years. “Many have accessed the banking and private market for over 15 years. So the history is very important, because giving credit to adventurers is very riskly,” he said.
The experience in facing different economic scenarios is also a security factor. “When you take a businessman who has already undergone cycles of low and high commodities, Brazil’s economic cycles, he faced a cross plan, Cruzeiro, this businessman knows how to navigate Brazil and agribusiness. You will hardly have a problem with a good guarantee, with a company that is concerned about the numbers and does not want to leverage too much,” he said.
He also recalls that the Brazilian environment requires caution. “Brazil is a country that comes out of interest of 2% and goes to 15%. So, the level of leverage matters too much. Many people do not know how to take this step.”
