What Is Private Credit?
Tivio Capital’s Private Credit team is dedicated to investing in debt securities issued by investment grade issuers, with a strong focus on disciplined selection, fundamental analysis, and continuous risk monitoring. Our approach is centered on selecting high-quality issuers with investment grade credit ratings, seeking capital preservation and consistent returns for investors interested in the private credit market. Through rigorous processes and ongoing monitoring, our team aims to deliver robust solutions that combine performance with long-term consistency.
Why Invest?
Private Credit combines high-quality issuers with disciplined active management to preserve capital and deliver consistent long-term returns, with controlled risk.
Credit Quality
Selection of solid issuers with high credit ratings, prioritizing safety and reliability.
Governance and disciplined process
Proprietary processes covering origination, analysis, compliance, and investment committee review, ensuring allocation discipline.
Intelligent diversification
Exposure to banks and non-financial companies, as well as structures aligned with a high‑grade profile, reducing risk concentration.
Continuous monitoring and consistency
Ongoing risk monitoring with a focus on capital preservation and consistent returns over time.
Investment strategies
Frequently Asked Questions (FAQs)
Private Credit refers to investments with lower credit risk, issued by companies and financial institutions with strong repayment capacity (investment grade credit ratings), aiming at capital preservation and consistent returns. Alternative Credit, on the other hand, accepts a higher risk of default in exchange for greater return potential and is therefore more suitable for investors with a higher risk tolerance.
Three main risks stand out: credit risk (the issuer fails to repay its obligations); market risk / mark-to-market (price fluctuations driven by changes in interest rates and credit spreads); and liquidity risk (the time required to convert fund units into cash).
After issuance, credit instruments are repriced according to interest rates and spreads required by the market. When rates rise, prices fall (and vice versa), which may cause fluctuations in the fund’s unit value – even when issuers remain fully compliant with their obligations. CVM Resolution 175 reinforces valuation and transparency practices across the industry.
The subscription date determines the unit price used for redemption, while settlement refers to when the cash is actually credited to the investor’s account. In private credit funds, liquidity terms vary according to the fund’s rules and may range from D+10 to D+30 or longer, reflecting the lower liquidity of underlying assets. Investors should always consult the fund’s fact sheet and regulations.
Private credit funds are subject to income tax under a regressive tax rate table and to semiannual advance income tax collection, known in Brazil as “come‑cotas”. Pension funds follow specific tax rules (progressive or regressive) and are not subject to come‑cotas. Infrastructure debentures issued under Law 12,431 offer income tax exemption for individual investors, currently valid through 2030 under existing regulations. There have been recent discussions regarding potential changes, making it essential for investors to stay updated on regulatory developments.
