Fiagros: Regulatory changes shape the investment landscape; Understand

There are good reasons to believe that the number of Fiagros and their net worth will continue to grow in 2024 and the coming years. Firstly, because their net worth is still far from that of Real Estate Investment Funds (FIIs). Although agribusiness accounts for approximately 25% of Brazil's GDP and the real estate market about 10%, the net worth of FIIs is currently 13.5 times that of Fiagros. Secondly, because Fiagros have a great market potential, as there are still many instruments (CRAs, CDCAs, CPRs, among others) capable of offering significant returns with low risk. Additionally, the volume of these instruments is also expected to grow considering the private credit needs of the entire Brazilian agribusiness production chain, which increasingly seeks alternatives to public credit rationing and credit provided by the financial system.