Investment Fund in Credit Rights
Investment Fund (FIDC) is a form of investment which aims to provide returns from the acquisition of credits or performing receivables funds and non-performing originated in various financial transactions (bills, NP's, CCB's, contracts, payroll loans, financing and other receivables).
To ensure the safety of its shareholders and in the good corporate governance and transparency of information practices, receivables and other assets that the fund's portfolio must be held in custody, registered and / or maintained in: deposit account directly on behalf fund specific accounts opened in the Selic, registration systems and financial settlement of assets authorized by the Central Bank or in institutions or entities authorized to provide such services by the Central Bank or the CVM, except for fund investments in investment fund shares, and investment funds in fund shares.
The structuring of Investment Funds in Credit Rights (FIDC's) becomes competitive in funding over $ 30 million with maturities above 3 years.
The FDIC's are made in the open, when investors may request the redemption of shares in accordance with the Regulation or closed, when quotas can only be redeemed at the end of the fund term period or period of each series or class of shares, as stipulated in the Regulation.
- 1. The originator (or transferor) is the company looking to raise funds by making prepayment of receivables
- 2. The originator has receivables against one or more borrowers, individuals or legal entities
- 3. The portfolio of receivables generate a future cash flow, which is an originator of the asset
- 4. The FIDC acquired by transfer the receivables from the originator
- 5. The FIDC capitalizes funds through the sale of senior and subordinated to investors
- 6. The proceeds from the sale of the shares are used to compensate the originator by the assignment of receivables
- 7. Payment of debt (drawn) is made directly to a financial agent (escrow account)
- 8. The funds paid by debtors (drawn) are used for compensation of FIDC quotas
- 9. The FDIC uses the funds paid by the debtors (drawn) to pay investors in accordance with the provisions of the fund rules