Abstract
This paper discusses the impact of the new antitrust law (Law 12.529/11) and other recent rules enacted by the Brazilian Antitrust Authority (CADE) to transactions involving investment funds. The merger control for transactions involving investment funds is not a new subject to CADE. Since the beginning of the last decade CADE is looking for criteria that would make clear whether investment funds’ transactions, particularly those involving Private Equity and Venture Capital activities, should be subject to merger control. The investment funds activities impose a number of challenges to Brazilian and foreign antitrust authorities because these funds could, potentially, raise important competition issues involving, for example, minority shareholdings. This paper looks for CADE’s previous decisions and to the new rules to conclude that there is a clear evolution in the treatment given by the authority to investment funds’ transactions. However, it is still necessary to CADE to keep moving forward, adopting rules to foster capital market development (exploring investment funds’ pro-competitive potential) without disregarding important competition issues that may arise from investment fund’s activities.
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