Brazilian asset manager Quadra Capital is moving toward finalizing a purchase of about 15 billion reais ($2.99 billion) in assets that Banco de Brasília (BRB) had acquired from the now-liquidated Banco Master, according to three people familiar with the discussions. The sources spoke on condition of anonymity because the negotiations have not been made public.
Those involved said the transaction will need either a formal nod or, at minimum, no objection from the central bank. Two other individuals close to the talks cautioned that while formal authorization may not be required, the monetary authority must be able to assess and understand the framework of the deal.
Both Quadra Capital and BRB declined to comment when contacted. The central bank did not immediately respond to a request for comment.
Regulatory attention on BRB has intensified since the lender took on assets from Banco Master, a portfolio that included credit claims later found to contain fraudulent elements. The financial regulator has engaged with BRB over the lender's need to strengthen its capital position following a balance sheet issue tied to that acquisition.
Banco Master itself was liquidated last November by Brazil's central bank. The mid-sized bank had expanded rapidly using a strategy centered on high-yield debt marketed through investment platforms. Its former controller, Daniel Vorcaro, is currently in prison amid a police investigation into alleged fraud. After his arrest last month, Vorcaro's defense team issued a statement saying he denied the charges against him.
Sources familiar with the Quadra-BRB negotiations said the assets targeted in the potential sale comprise primarily equity stakes in companies and credit claims against businesses and individuals that had previously belonged to Banco Master. One source emphasized that, in many cases, these assets had no direct connection to Banco Master’s controllers or to the bank itself.
Quadra Capital, a firm known for managing low-liquidity holdings, has reportedly been in talks with BRB for roughly 60 to 90 days. The parties are said to be close to concluding an agreement within weeks, contingent on the central bank registering no objection to the proposed structure.
Last week, Celina Leão, the governor of the Federal District, told reporters in Brasilia that BRB was negotiating with an unspecified investment firm to sell up to 15 billion reais of assets that the bank had absorbed from Master. Under the structure described by the governor and confirmed by people involved in the negotiations, the transaction would include an initial cash payment of 4 billion reais and the remainder would be settled through quotas of a newly formed fund.
Those close to the negotiations confirmed that the bulk of the consideration would be paid in quotas of a fund created specifically to manage the former Banco Master assets, but they did not provide an exact breakdown of the split between cash and quotas.
Before the central bank moved to liquidate Banco Master, BRB had acquired certain assets from the troubled lender and had also been in separate talks to assume control of Master. That potential acquisition was rejected by the central bank.
BRB has missed the statutory deadline to publish its 2025 financial statements, citing the need to complete a forensic audit examining the impact of the acquisition of Master assets. The lender has scheduled a shareholder meeting for April 22 to vote on measures intended to strengthen its capital base.
The discussions between Quadra and BRB and the timing of the shareholder meeting underline a period of heightened regulatory and financial scrutiny for BRB as it attempts to resolve capital and balance-sheet questions stemming from its prior dealings with Banco Master.