For the past three decades, billionaire Daniel Dantas has steadily expanded his wealth through the Opportunity firm, which he co-founded in Brazil. Now, Opportunity is venturing directly into US real estate investment for the first time.
Opportunity manages approximately 58 billion reais ($11.5 billion) in assets, ranging from rural land holdings to port operators to palm oil producers, establishing itself as one of Brazil’s largest independent asset managers, as per filings. Its activities encompass private equity, asset management, wealth management, and real estate.
With a focus on real estate, Dantas and his associates are extending Opportunity’s reach beyond Brazil to develop apartment towers and condominiums in Miami’s thriving market.
Although Opportunity has previously invested in the US real estate market through third-party funds over the past seven years, it now acquires land and initiates projects directly through a joint venture with Miami-based Leste Group, established by fellow Brazilians. The joint venture, known as LORE, has already acquired seven plots worth approximately $100 million in the Miami area and intends to invest over $1 billion within five years. Among its initial projects is a 70-floor apartment tower featuring 500 units in the Brickell neighborhood.
The current real estate portfolio, managed by Opportunity, amounts to about 3 billion reais, with an average annual return of 19% since its inception in 1996, according to Jomar Monnerat, the division’s head, who has been with Opportunity for 29 years. The fund distributes dividends twice a year, averaging about 8% of profits.
Jomar Monnerat is head of the real estate division at Opportunity, which is currently retrofitting a historic 1922 hotel in Rio into a multi-family complex.Photographer: Lucas Landau/Bloomberg
“We’ve had success with US investments in the past, but we noticed that a significant portion of the profits from the deals were going to the fund managers,” Monnerat explained during an interview at his office in Rio de Janeiro. “So, we decided, ‘We have the expertise to do this ourselves,’ and established a company.”
While constructing multifamily projects in the US has been a popular investment trend in recent years, Monnerat highlighted that Opportunity is focusing on condominiums in Miami. These properties can offer better short-term returns, especially amidst high interest rates and a slowing economy. He noted that they are developing several projects in areas such as Coconut Grove, Brickell, and the southern part of the city.
Aerial view of Miami’s Coconut Grove neighborhood.Photographer: Joe Raedle/Getty Images
Opportunity, already recognized as the largest real estate developer in Rio, has successfully delivered over 100 commercial and residential projects. Presently, the company is undertaking the ambitious task of renovating a historic landmark: the 1922 Hotel Gloria, transitioning it into a residential complex. Once Brazil’s premier five-star hotel, Hotel Gloria welcomed esteemed guests like Marilyn Monroe and Albert Einstein during its prime. Following the financial downfall of former billionaire Eike Batista, the hotel was acquired in an auction.
Having acquired the property for 100 million reais, Opportunity has allocated an additional 300 million reais for its refurbishment. Upon completion, the complex will feature 266 apartments and is slated to open its doors in 2026.
The firm experienced record-breaking sales totaling 800 million reais in 2022 and is poised to surpass this milestone in the current year.
Opportunity acquired the historic Hotel Gloria at auction.Photographer: Lucas Landau/Bloomberg
At 69 years old, Dantas, who has eschewed the spotlight since a turbulent period in 2008, co-founded Opportunity in 1994 alongside partner Dorio Ferman and his sister, Veronica Dantas.
In 1997, Opportunity was engaged by Citigroup Inc. to assist the bank in telecom industry investments during the sector’s privatization. However, after managing Citigroup’s private equity portfolio for several years, Dantas’s firm was removed in 2005, sparking a legal dispute with the bank.
Subsequently, three years later, the financier faced brief imprisonment twice amid bribery and money laundering investigations. However, he was later acquitted of all charges. In a 2017 email to Bloomberg News, Dantas asserted that the investigation was a ploy aimed at benefiting Opportunity’s rivals.
Daniel Dantas testifies before a congressional inquiry in Brasilia in 2005.Photographer: Eraldo Peres/AP Photo
The extent of Daniel Dantas’s personal investment within Opportunity’s 58 billion reais of assets, as well as his ownership percentage in the company, remains unclear. A spokeswoman for the firm declined to provide details, citing “legal restrictions.”
According to filings, a sole investor in Opportunity Gestora de Recursos, where Dantas is listed as a controller, accounts for 6.8 billion reais of the 13 billion reais under management. Similarly, in Opportunity HDF Administradora de Recursos, where Dorio Ferman is the listed controller, a single investor contributes 11.2 billion reais out of the 19.8 billion reais.
Opportunity’s real estate fund originated from a single project in Rio’s Barra neighborhood, then expanded into office buildings, according to Monnerat. Following the peak in rents around 2012 and 2014, the company began selling commercial spaces and transitioning to residential projects in the affluent Zona Sul area.
Expanding beyond Rio, Opportunity owns over 400,000 hectares (988,420 acres) of land in the northern state of Para, where it engages in cattle raising and cultivates soybeans and corn through its subsidiary, AgroSB.
Corn for cattle feed at an AgroSB farm in Maraba, Brazil.Photographer: Dado Galdieri/Bloomberg
Located approximately 170 kilometers (105 miles) east of Rio, Opportunity is spearheading the development of a luxury condominium project named Arete in Buzios, a picturesque peninsula renowned for its pristine beaches. With a touch reminiscent of Florida, the homes are situated along man-made canals, complemented by an 18-hole golf course and a nearby airstrip. According to Raphael Zanola, Opportunity’s real estate manager, approximately 300 out of the planned 3,000 houses have already been sold.
Moving northwards, Opportunity is actively engaged in a sizable residential project in Espirito Santo state, along with another gated community in Brasilia, the capital city. Monnerat emphasized that Opportunity deliberately avoids entering the saturated market in Sao Paulo, opting instead to concentrate on regions where it possesses expertise and can assert dominance.
A recent collaboration with local developer Rafael de Carvalho Ramos, known as BRIX, focuses on renovating old properties in Rio’s affluent Ipanema and Copacabana neighborhoods, with Opportunity holding a 75% stake in the venture.
In Miami, Opportunity’s partners at Leste, led by Stephan de Sabrit and former Banco BTG Pactual SA executive Emmanuel Hermann, share a longstanding relationship with the Opportunity team. Monnerat and Zanola frequently spend a week every 45 days in Miami, operating from the Leste office space in Brickell.
Monnerat remarked on the business-friendly environment in the US, which greatly facilitates their endeavors. Originally planning to construct 250 apartments at the site, the project’s expansion became feasible due to its proximity to a train station, allowing for the development of 60 or 70 floors, a venture not typically feasible in Brazil, as highlighted by Monnerat.