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In the early 2000s, new malls were sprouting up all over São Paulo and Rio, and industry ownership, as I’ve mentioned, was highly fragmented. We partnered with a local private equity firm to create BR Malls as a growth platform in 2006, investing $86 million. Roughly a year later, we led BR Malls in an IPO on Brazil’s Bovespa at an equity valuation of roughly R$2.1 billion. The capital enabled BR Malls to lead the industry in acquisitions. Five years later, the company had nearly fifty malls. Total returns for public shareholders were over 26 percent, and BR Malls had an equity market cap of R$10.7 billion. By the time we fully exited the investment in 2010, BR Malls was the largest mall company in Brazil, and we had achieved a 4.2x multiple, or 48.6 percent IRR.
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