Brazilian asset manager Pátria Investimentos today took over three equity funds from a smaller rival, driven by client demand for more liquid products.

Executives from the São Paulo-based firm said it was adding MainStay's Long Short FIM, Equity Hedge FIC FIM and Ações FIC FIA funds into its portfolio.

Around half the firm’s clients are based outside of Brazil and the executives said that it wants to give clients more ways of investing in the country. Currently, over 90 per cent of its products are less liquid instruments such as private equity and infrastructure funds.

It oversees around BRL10 billion (around $4.9 billion) in investor money.

"What we want to do is to create a complete platform of products so our clients needn't look out for anything else," Olímpio Matarazzo Neto, senior partner, is quoted as saying in Reuters. "This move makes all possible sense because our illiquid funds operations is gaining a leg on liquid funds thanks to MainStay."

The firm is part-owned by the private equity giant Blackstone, which bought a 40 per cent stake in 2010.