Investment Strategy
Petros is Brazil’s second-largest corporate pension fund (after Previ), managing approximately $20 billion on behalf of current and former employees of Petrobras, Brazil’s national oil company, and affiliated companies. Petros serves approximately 130,000 participants and beneficiaries.
The investment strategy is shaped by Brazilian pension fund regulations and the need to generate returns sufficient to meet long-term pension obligations. The portfolio spans fixed income (which dominates given Brazil’s historically high interest rates), equities, real estate, private equity, and infrastructure. Petros targets approximately 15% in alternatives, with significant exposure to Brazilian and Latin American private markets.
Private equity investments focus on Brazilian and regional managers, with exposure to growth equity and buyout strategies. Infrastructure investments are particularly relevant given Brazil’s extensive infrastructure development needs and Petros’s connection to the energy sector through Petrobras. Real estate includes direct property holdings in Brazil.
How to Approach
Petros’s investment team operates from Rio de Janeiro. GPs seeking a relationship should approach the investment management division with strategies that are relevant to the Brazilian and Latin American market context.
The fund has been through governance reforms in recent years, strengthening its investment processes and risk management frameworks. GPs should demonstrate institutional-quality operations, strong compliance, and transparent governance. Managers with Brazilian or Latin American expertise, Portuguese-speaking teams, or local presence will have a significant advantage.
The team attends Latin American institutional investor conferences and is accessible through the Brazilian pension fund ecosystem. Building relationships through ABRAPP (the Brazilian association of pension funds) and through local advisory networks is effective.
Frequently Asked Questions
How much does Petros allocate to alternatives?
Petros allocates approximately 15% of its portfolio to alternative investments including private equity, infrastructure, and real estate. Brazilian pension fund regulations set limits on alternative allocations, and Petros has maintained a meaningful private markets program focused on Brazilian and Latin American opportunities.
How can fund managers approach Petros?
Petros's investment team is based in Rio de Janeiro. GPs should approach the investment management division directly. Petros tends to favor managers with Brazilian or Latin American expertise, though the fund also invests in global strategies. Having Portuguese-speaking capabilities or a Brazilian presence can facilitate the process.
What regulatory framework governs Petros's investments?
Brazilian pension fund investments are regulated by the National Monetary Council (CMN) and supervised by PREVIC. Resolution 4,994 sets investment limits by asset class for closed pension funds. Alternative investments are subject to specific limits that vary based on the risk profile and maturity of the pension plan. Petros operates within these regulatory constraints.
