Alfredo Setubal cited lower capital costs, Brazilian interest rates and geopolitical tensions as factors that would shape new investments.
Itaúsa chief executive Alfredo Setubal said the holding company expects to resume new investments if economic conditions improve. In an interview with CNN Money, he linked future investment to a lower cost of capital and reduced geopolitical tensions. His comments came at a meeting of Brazil’s major investment holdings after the first round of the election.
Against the backdrop of the political developments, Brazil’s stock market rose more than 7%, reaching a record 209,000 points. At the annual Panorama Itaúsa event, executives discussed the economic outlook and strategies for their companies. Setubal described the holding’s diversified portfolio and active management, developed over the past decade, as key strengths.
Itaúsa is a holding company without its own operating businesses; its largest asset is a stake in Itaú Unibanco. Its portfolio also includes companies in industrial and infrastructure sectors, including Alpargatas, which owns the Havaianas brand, and Dexco, associated with the Deca brand. Setubal said the company had sold some holdings and invested in others over the past decade.
Setubal said Itaúsa had taken a more cautious approach in recent years because of the high cost of capital. Its latest investment in a new company was a stake in Motiva at the end of 2022. In 2024, it directed additional funds to companies already in its portfolio: Aegea, in water and sanitation, and Alpargatas. He said the company was careful about new decisions, considering the interests of about 970,000 individual shareholders.
The holding company may again seek new opportunities if the economy grows, geopolitical tensions ease and interest rates in Brazil fall. “We will certainly return to the market to make new investments,” Setubal said.