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Andbank Invests in California in Partnership with CIX Capital

Investments Abroad Sem categoria

author

Carlos Balthazar Summ

post date

14/07/2023

reading time

3 minutes

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The partnership between Andbank and CIX Capital was featured on Investing.com in a report published in July 2023. This initiative introduces a groundbreaking opportunity for local investors: a new product that enables international investments using funds allocated in Brazil through a feeder fund based on a closed multimarket investment fund. The first offering raised R$ 25 million.

CIX Capital structured an innovative and tailored solution to facilitate the operation, enabling the fund to receive investments in Brazilian reais, transfer the resources abroad, and invest in U.S.-based products. In an interview with Investing.com, Paulo Carneiro, Head of Real Estate and Alternative Products at Andbank Brazil, praised CIX Capital, stating: “CIX Capital has great ideas and extensive experience in the local and international real estate capital markets. We felt confident throughout the due diligence process, which allowed us to host events at the bank and with CIX.”

Investment in Affordable Housing in California

The Andbank-CIX Capital partnership focuses on the affordable housing segment in California, facilitated by U.S. developer Castellan Real Estate Partners. Affordable housing has become a highly attractive investment opportunity in the U.S., driven by rising rental prices—exceeding 10% annually in some cities. In response, the U.S. government has introduced social programs and fiscal incentives to developers and financial institutions, aiming to create more accessible rental housing in areas with high housing deficits.

Carneiro emphasized: “We chose to sell an experience, not just a product, in a strong currency. Additionally, this investment carries no execution risk.” He explained that the feeder fund functions as a mirror fund, transferring money abroad and allowing investors to track the bond under custody.

Key Advantages of the Feeder Fund

According to Carneiro, one of the standout features of this initiative is its ability to provide clients with a product that yields returns in U.S. dollars plus 10%. He stated:
“This is a way to offer clients an experience with a product that diversifies their investments beyond Brazil. I’m selling an experience, not just a product.”

A Unique Structure Created by CIX Capital

Carneiro also highlighted the exclusive structure developed by CIX Capital:
“This was our first partnership with CIX, which brought significant intellectual capital. The firm has innovative ideas and a long history in real estate capital markets both locally and internationally. We were very comfortable throughout the due diligence process, enabling us to host events at the bank and with CIX.”

For local investors, this partnership opens up an excellent opportunity to expand their portfolios internationally. It provides access to a unique structure created by CIX Capital, offering attractive dollar-denominated returns in a relatively short timeframe.

Addressing the U.S. Housing Deficit

The housing deficit in the U.S. continues to grow, with an estimated need for 4 million new homes in the coming years to meet demand. States like California, Florida, and Texas are most affected, with significant demand for affordable housing supported by government programs.

Investing.com: A Leading Financial Platform

Investing.com is a leading financial markets platform available in 44 languages, offering real-time data, quotes, charts, financial tools, news, and analysis covering 250 global exchanges. With over 21 million monthly users and 180 million sessions, it ranks among the top three financial websites worldwide.

Read the full report here: Investing.com – Feeder Fund by Andbank Enables Real Estate Investment in the U.S.

Disclaimer

This article is not an investment recommendation nor an offer of real estate securities. Always understand the risk factors before making any investments. Opinions expressed are not statements of fact and are subject to change.

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    CIX Capital is an investment by Maiz: maiz.com.br