Rodrigo Balassiano, an expert in structured funds and a deep connoisseur of the credit market in Brazil, highlights that Credit Rights Investment Funds (FIDCs) have undergone a significant transformation since their creation in 2001. Initially seen as niche instruments, limited to specific corporate transactions, FIDCs have evolved to become central components in credit structuring in the country. With strong adaptation to new technologies, enhanced regulatory robustness, and the ability to serve different risk profiles, FIDCs today represent one of the most versatile vehicles in the capital markets.
Over more than two decades, these funds have followed the growth of securitization in Brazil, incorporated increasingly sophisticated regulatory requirements, and have become part of the funding strategies of fintechs, mid-sized companies, large corporations, and even public institutions. Rodrigo Balassiano emphasizes that by combining legal flexibility with structural security, FIDCs offer unique advantages for credit originators and institutional investors.
Rodrigo Balassiano and the early years of FIDCs in Brazil
Created under CVM Instruction 356, FIDCs emerged as a solution to allow companies to transform their receivables into liquidity through the structuring of investment funds. The model enabled the sale of credit rights—such as invoices, service contracts, rents, and loans—to a fund that, in turn, issued shares to investors seeking returns backed by real assets.
According to Rodrigo Balassiano, in the early years, FIDCs were mainly used by large companies looking for an alternative to traditional bank credit. The structures were still highly customized, with little standardization and low share liquidity. However, the fundamental pillars of the structure—asset segregation, share subordination, and independent custody—were already demonstrating the strength of the model.
Sector professionalization and regulatory advancements
Starting in the 2010s, FIDCs began to gain greater institutional relevance. As the market matured, with the entry of specialized asset managers and stricter regulation by the CVM, the sector underwent deep professionalization. Asset eligibility criteria were refined, due diligence processes became more rigorous, and administrators took on a more active role.
Rodrigo Balassiano points out that this shift was essential to increasing investor confidence, especially among pension funds, insurers, and qualified investors, who began to see FIDCs as an efficient and safe alternative for diversification and risk-adjusted returns.
Transparency also increased with the requirement for risk ratings, external audits, periodic reporting, and stricter credit rights records. These advancements contributed to the exponential growth of assets under management in these funds over the past decade.
FIDCs and the new technological frontier
The most recent transformation in FIDCs came with their integration into the digital ecosystem. Credit fintechs began using FIDCs as their primary funding structure, originating high-volume digital receivables with automated control. This synergy between technology and financial structuring has further boosted the scalability of these funds.
According to Rodrigo Balassiano, this new phase of FIDCs requires data intelligence, agile pricing systems, continuous portfolio monitoring, and dynamic reporting. This has led to the growing use of integrated platforms, machine learning tools for credit analysis, and blockchain to ensure the authenticity of receivables.
This modernization also demands greater governance sophistication. The joint action of fund managers, custodians, collection agents, auditors, and rating agencies has become even more critical to ensure operational security.
Current challenges and the need for standardization
Despite these advancements, FIDCs still face important challenges. One is the heterogeneity of structures, which can hinder fund comparison and increase information asymmetry. Another key issue is the need for greater standardization of credit rights data, especially for digitally originated assets.
Rodrigo Balassiano points out that the regulation brought by ICVM 175 has provided greater clarity to structured operations, particularly by reinforcing the need for controls, compliance systems, and transparency. The new rule represents an important milestone for consolidating best practices and enabling the sector’s sustainable growth.
Outlook for the future of FIDCs
The outlook for FIDCs is highly positive. The growth of credit digitalization, expanded access to data, and the demand for alternatives to the traditional banking system should further drive the use of these funds. Moreover, the trend toward customization allows FIDCs to serve niches like educational credit, student loans, rural credit, healthcare, mobility, and ESG financing.
As Rodrigo Balassiano analyzes, the future of FIDCs lies in the integration of innovation, regulation, and efficiency. Funds that successfully combine sound legal structure, cutting-edge technology, and solid governance will lead the next stage of the Brazilian credit market.
Conclusion
Since their inception, FIDCs have evolved from experimental structures to sophisticated financial vehicles that now play a strategic role in financing the real economy. With regulatory adjustments, technological advances, and growing demand for credit solutions outside the traditional banking system, these funds have become key players in the capital markets.
Rodrigo Balassiano’s analysis shows that FIDCs will continue to be central instruments for originators and investors as new applications, digital integrations, and regulatory standards take hold in the national landscape. The challenge now is to grow responsibly, maintaining the balance between innovation and security.
Author: Clodayre Daine
