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    Fabrizio Costa is a Brazilian art collector and researcher, former currency speculator, venture capitalist and advisor who was responsible for shaping debt and equity structures which leveraged several start-ups in the oil & gas, mining, engineering and marketing sectors.

     

    Mr. Costa began his career in São Paulo as a currency broker in 2002 when he co-founded the firm GT Financial in association with his early stage mentor in financial markets, Doctor Renato Ventura Ribeiro, Ph.d, a brilliant mind for whom he had great respect and admiration, and who would tragically commit suicide after killing his own child a few years later - the episode had a profound impact on Mr. Costa’s life and marked him for many years. GT Financial targeted non-resident investors carrying business outside Brazil, and its startup was covered by the reputable newspaper O Estado de São Paulo. In the end of 2002, on a mutual and friendly agreement, Mr. Costa left the partnership to become a solo professional trader in the international interbank currency market and also in the Brazilian debt and stock markets. "By that time, I had been studying financial markets during the nigh time for 5 long years, I had built a bankroll to start and I felt it was the time to embrace the challenge I was preparing myself for", he remembers.

     

    However, in 2003, through and old time colleague of his older brother, a former investment banker who held a position in Accenture, Mr. Costa met Doctor R. Morgado, Ph.D, a brilliant physicist specialised in statistical physics and developer of Monte Carlo algorithms for general stochastic processes and advanced genetic algorithms. Mr Costa developed a truthful respect towards Mr. Morgado and a natural intellectual rapport arose between the gentlemen, who united knowledge, efforts and research to develop a proprietary automated trading system based on genetic algorithms which would gradually evolve into a full artificial intelligence trading system. "It was a beautiful project and something that even in Wall Street would become a reality a decade later", he remembers. Fidelitas Investimentos was born, founded by four partners, to manage exclusively its own capital and shareholders' capital while it was under authorisation process in Brazilian Securities Commission.

     

    In 2004, the startup caught the attention of Bill Gate’s most powerful partner in Latin America, the IT magnate Mrs. Bonner, founder of T.B.A conglomerate and elected by Forbes Brazil at that time as the 10th most powerful person in the country, who made an offer to take the controlling position of the company after it was presented to her by one of the four partners. “Although she had already been convicted by a high profile cartel case involving bribery, espionage and full scale corruption practices, using a deputy chief of police and powerful politicians (according to the speech of Senator Serys Slhessarenko at the Parliament, in public records ), the four partners accepted the offer to sell the control of the company (…) it was a take-it-or-leave-it offer and unfortunately we accepted it.”, he explains with regret. From on then on a series of management interferences from the controlling shareholder side led the parties to unsolvable disagreements and quarrels. “The abuse and interference was a breach of our shareholders' agreement and it caused loss of our savings and our family’s savings which we invested in the company”, he remembers with regret. “Deceived by an evil spirit, I took vengeance in my heart, disobeyed God’s Commandments, accepted to engage in a prohibited form of talion with excessive force and the battle with the giant would last for twelve years, with repercussions in Brazilian Securities Commission and in Justice”, he explains. “The day I saw Cristina crying in front of me, I understood I had become a monster worse than her. That was the day when I began my search for the origin of evil.” Years later, Mrs. Bonner was indicted and prosecuted for corruption and money laundering by the State Prosecution Office in Operation Pandora Box for the largest corruption scandal in the modern Republic at that time which was responsible for the country's first impeachment of a State Governor (the Governor of the Federal District), the imprisonment of the State Prosecutor and the fall of the Chairman of the State Court. The case marked the beginning of the use of the institute of plea bargain in Brazilian law and it is today the main legal tool used for the clean up of Brazilian politics and corporate world. “But everybody has a good side. When I withdrew myself from that prohibited war, voluntarily accepted to provide community services which were sentenced to me to compensate the excesses of my talion and finally declared myself a friend of the State - , I have publicly recognised her good deeds and qualities as a human person, specially her fight to pass the Maria da Penha Law in National Congress, which creates legal protection for women in Brazil, the fact that she has been a good mother and a good companion for a man with cancer. Surely only God knows his mysteries. He is the All Knower of All Things.”

     

    In 2006, Mr. Costa began taking controlling positions in privately held companies.

     

    In that same year of 2006, Mr. Costa formed a consortium with British-German private equity firm Wertheim Roth Capital and launched an unsuccessful takeover of ATP S.A, which controlled Brazil´s second largest independent ATM network— Rede Verde Amarela — the direct competitor of Rede24Horas, controlled by Tecban S.A. The acquisition would result in the formation of Multi ATM network and open the way for individual entrepreneurs in retail to own ATMs and receive transaction rebates against the lease of the ATMs to the network thus paving the way to a new niche market in the Brazilian technology sector (something which would be described in today's language as the "Uber of ATMs"). As a consequence, the model reduced Capex requirements from banks since the financial burden of ATMs purchase was transferred to the retail participants. The Board of Officers of ATP S.A defeated the attempt based on a higher — though unsustainable — valuation of the company´s shares. Mr. Costa strongly disagreed with the valuation proposed by the Management and thus pulled back the offer. Less than a year later, Mr. Costa´s pull back move proved right when the CEO of ATP S.A, the former chairman of the Regional Bank of Brasilia and 17 individuals were arrested for corporate fraud and corruption involving ATP S.A, the Association of State Banks (Asbace) and the Regional Bank of Brasilia (state owned bank) driving the company´s valuation to a historic low.

     

    At the age of 27, Mr. Costa developed a reputation of a "corporate raider kid” after his hostile takeover of Fóton Informática S.A — a distressed medium-sized company which managed the nationwide ATM network of Caixa Econômica Federal - in consortium with Wertheim Roth Capital. Mr. Costa systematically sold Fóton´s assets to repay the money he borrowed to purchase the company, which was described as “asset stripping” during his attempt to take the company public in AIM - London Stock Exchange — under the control of Photon Systems PLC. After one year litigation, the parties reached an amicable agreement in civil court and Mr. Costa gave up his efforts to take Photon Systems PLC public. Three years later, Mr. Costa's pull back move proved right when the founding shareholders of the company were prosecuted for procurement fraud and finally convicted in 2011.

     

    In 2007, sick of the corruption he faced along the years, Mr. Costa decided to leave the corporate world. An erratic lifestyle, personal and family problems followed by the traumatic separation from his brother, associated with a neurological condition — which took almost a decade for Mr. Costa to comprehend — led him to full bankruptcy. "As Ulysses, I saw myself lost in the sea wandering with limited consciousness or direction", he remembers. It took 4 years for Mr. Costa to gradually recover from misery and adversity, reestablish himself and make his move back to the financial markets. But he is emphatic to say: "Even in my worst moments, when I was drowned in misery, I never stopped to help the weak and oppressed, and I gradually paid all my creditors, except two who were abusive and disrespectful."

     

    In 2011, Mr. Costa made his move back to the game — as he usually describes — thanks to a risky move in the international currency market, move which he is emphatic to say he would not repeat again. This year also marked his come back to the corporate world.

     

    Since 2011, Mr. Costa helped to internationalize several medium-sized companies and start-ups, when he founded the venture capital firm BR Par Venture Partners in São Paulo, Brazil. Mr. Costa sustains: "As it is expected from someone in my position, I dealt with the controlling shareholders and top management of some of the largest companies in Brazil, both publicly traded and privately held, investment bankers and middle market companies. This is the very nature of venture capital business. No one could expect, at that time, the full scale meltdown that would affect the biggest names of the Brazilian corporate world and local market leaders a few years later", he explains. During the period Mr. Costa led Br Par Venture Partners, he held meetings with large corporations such as EBX Group (a publicly traded company controlled by the world's 7th richest man at that time, Mr. Eike Batista), JBS (the world's largest meat processing company), Hypermarcas, Engevix, Promon, among others, and also with local market leaders in expansion such as Facility Group, Medley Laboratories, Vitapan Laboratories, among dozens of others, but Mr. Costa is emphatic to say he is glad he pulled back and never concluded a single deal with the said companies. "I simply never concluded any deals with them, never made a single cent with them, thanks to God, The Most Gracious and Most Merciful", he explains. A few years later, Mr. Costa's pull back move proved right when the controlling shareholders and/or top management of the enlisted companies were targets of major corruption crackdowns which led hundreds of people to investigation, jail, indictment, prosecution, conviction, fines and/or seizure of assets.

     

    In 2012, Mr. Costa formed a consortium with KBW Investments, the investment firm led by His Royal Highness Prince Khaled bin Alwaleed bin Talal of Saudi Arabia - the son of His Royal Highness Prince Alwaleed bin Talal, the world's 26th richest man at that time - to acquire Delta Construções S.A (under Legal Recovery), the 6th largest construction company in Brazil which was under distress after systematic clients´default due to the previous involvement of its major shareholder in a nationwide corruption scandal. The acquisition, if officially approved by the Public Assembly of Creditors and by the Court of Legal Recovery in Rio de Janeiro, would result in a Newco which would restore Brazilian operations, internationalize its activities and thus pave the way to save over 5,000 jobs (the remaining of the 25,000 jobs once sustained by the company). After almost 18 months of negotiations and disagreements between the consortium members, the controlling shareholder and the Board of Officers of the company, Mr. Costa withdrew himself from the deal. A few years later, in 2016, the controlling shareholder of Delta was arrested, his assets were seized by Justice and today he cooperates with the State Prosecution Office in a plea bargain to help clean up the corruption in Rio de Janeiro. The consortium member who initiated a groundless dispute with Mr. Costa in civil court regarding exclusivity of the deal went bankrupt and was banned from Dubai. Until today, Mr. Costa believes that Delta deal would have been one of the most important deals of the Brazilian construction sector in the past 20 years. Mr. Costa has a deep respect for the company´s 52-year history and heritage, after surviving 8 different currency standards, under 17 different presidents, in a harsh macroeconomic and political environment, and firmly advocates that the Brazilian procurement law, the construction sector´s regulation and anti-corruption regulation requires a complete revamp to avoid defuse losses which continue to affect families, communities, municipalities, the states´ and federal governments, as well as creditors and entrepreneurs.

     

    In February 2014, BR Par Venture Partners announced the sale of its main portfolio companies to KBW Investments, and the transaction was covered by multiple specialized media vehicles, from local leading economic newspapers such as Valor Econômico to Wall Street Journal in New York. He sustains: "BR Par Venture Partners has been throughout its history a company dedicated to truly create value by taking pure risk in mergers and acquisitions. This was our motto from day one. Our main focus was to build solid start-ups, support early stage companies in expansion or restructure companies in distress and sell our holdings in the future to foreign investors entering Brazilian market. It is simple as that (...)" he remembers with serenity and continues: "We worked hand-in-hand with management of the portfolio companies in corporate restructuring, project finance, strategic partnerships and joint ventures, and provided experience and guidance in a myriad of market sectors, from entertainment industry to oil & gas". Regarding the participation of two members of the Worker's Party in its Board of Directors, Mr. Costa is emphatic to say: "They were the weak trying to leave the valley of darkness of politics. Something in my heart made me remember Prophet Moses, May Peace and Blessings of God be Upon Him, and I stood by them in their gradual political exodus attempt". Mr. Costa is emphatic to say BR Par Venture Partners never concluded a single deal with any State controlled companies, never drove any foreign companies to invest in any sate or municipality governed by the Worker's Party and never closed any deals with the oil giant Petrobras. He explains: "We simply never concluded any deal or made a single cent related to President Luis Ignacio's Administration or President Rousseff's Administration. Much on the contrary, we invested in the states of Santa Catarina and Espírito Santo - both opposition states to the federal government at our time - and we have always maintained public and fierce criticism against Petrobras and the way it sustained an immoral cartel in the oil & gas sector which was clearly against our investment interests - BR Par held a stake in a port startup in the oil & gas sector whose growth was hindered by the very existence of that odious Petrobras cartel." A few years later, BR Par's pull back move proved right when former President Dilma Rousseff was stoned out of her mandate in an impeachment process which further led most of her ministers and the leaders of the Worker's Party into investigation, jail, indictment, prosecution, conviction, fines and/or seizure of assets in the largest corruption crackdown of Brazilian history. The destruction caused the fall of the former president Luis Ignacio da Silva and marked the beginning of a new society. Mr. Costa remembers: "I heard something inside my heart saying - leave the corrupt cities of Rio de Janeiro and Brasilia and do not look behind. I remembered Prophet Lut, May Peace and Blessings of God be Upon Him, and after concluding the transition of our portfolio to KBW Investments, I accepted a transitional position in the Board of Officers in its headquarters in Dubai, as Chief Strategy Officer, and migrated to the United Arab Emirates. Two years later I saw the destruction of the corrupt cities from above the tropics."

     

    In October 2015, after divergences with the management of KBW, Mr. Costa decided to leave HRH Prince Khaled bin Alwaleed's firm to dedicate himself to trading and research, and announced publicly his decision. "I gradually understood that the corporate culture of KBW was different than mine and I had already fulfilled all my obligations under the Acquisition Agreement. With all due respect to His Royal Highness, I decided to exit and move on with life - I still had a couple of objectives to achieve before retirement". Since October 2015, Mr. Costa has no common interests with KBW. Two years later, in 2017, His Royal Highness Prince Alwaleed bin Talal and 10 other royals were arrested in an unprecedented crackdown on corruption in Saudi Arabia which led 200 people into investigation, jail, indictment, prosecution, fines and/or seizure of assets, and it is already referred to as "The Saudi Purge".

     

    In 2016, Mr. Costa has announced his retirement from the corporate world to dedicate himself to art collection and religious studies. Asked if he doesn't feel too young to retire, he said: "Certainly not. I remember a few days after I announced my retirement, Nico Rosberg went public and announced his as well, and I am 7 years his senior. Unfortunately there was a gradual and inappropriate inversion of values and understanding regarding the institute of retirement. A man doesn't die when he retires. Much on the contrary, he begins a new life with different challenges and this is healthy for the human soul". Mr. Costa currently sponsors Islamic Fine Art and Islamic Literature in London and has honorably accepted the invitation to hold the position of curator of Qadr Corp, a R&D Think Tank founded by S. Farris Al Kuwaiti, an Iraqi mathematician and investor known to have opposed the regime of Saddam Hussein after the invasion of Kuwait and the perpetration of crimes against humanity.

  • Economic and Political Views

    Economics and Financial Markets

     

     

    Mr. Costa advocates that market fundamentalism and economic interventionism are two opposite forms of extremism and both deviate from the path of a natural macroeconomic equilibrium. He strongly sustains that a clean and sober regulatory framework is indispensable for establishing healthy market conditions in any given open economy.

     

    Mr. Costa strongly condemns oppressive management fees charged by fund managers and oppressive listing costs on corporations, as well as terror-driven management acting against the interests of the shareholder and thus of wealth creation. Mr. Costa further condemns both controlling and minority shareholders acting with abuse of power. Last and most importantly, Mr. Costa vehemently condemns oppressive expansion costs on early stage companies and oppressive start-up costs on small businesses.

     

    Mr. Costa strongly condemns the development and distribution of derivatives in financial markets. Instead of trading derivatives, he sustains that market participants should trade the underlying assets - the stocks, futures, commodities, currencies and indexes. Although Mr. Costa does not condemn speculation and leveraging, he sincerely believes that speculation is unhealthy for the human heart and has an inherent charge of inequality, thus it is recommended to be avoided for evolved conscious reasons. Long term trend following, from both long and short perspectives, sustained by technical and fundamental analysis associated with a mature, solid, firm and objective view on risk management is thus seen as somehow more noble state of market participation from the philosophical point of view. In any case, Mr. Costa has always stated that the final decision of an asset purchase or sale is ultimately confirmed by abdominal muscle cramps originated by motor nerves.

     

    Political Science

     

    Mr. Costa strongly condemns the democratic system and the manipulation of criminal crowds, and advocates that the democratic system must gradually evolve towards the meritocratic system, wether in republics or in monarchies.

     

     

  • Philanthropy

    Open Economies

     

    Mr. Costa has been active as a philanthropist since 2011 and has devoted substantial resources to encourage open societies in Brazil — which are tolerant of new ideas and different modes of thinking and behavior — to evolve into open economies.

     

    Mr. Costa´s philanthropic funding includes efforts to promote foreign direct investment attraction policies developed by the World Bank and OECD (Organisation for Economic Co-operation and Development) in the south of Brazil, and to help the local oppressed white Christian minorities re-establish the values of family, cultural tradition and property. He began funding dissident movements in the Brazilian southern states against the established extremist communist order and never received any support from any international or domestic organization.

  • Fields of Research

    Neurosciences

     

    Mr. Costa is a passionate student of neurosciences and has devoted twelve years of investigation on neural networks — both natural and artificial — , cognitive process, general-purpose language programming, communication systems and applied studies on peer-to-peer networks for information sharing.

     

    Mr. Costa has equally devoted research to investigate and delimitate behavioral patterns of sociopathy and clinical consequences of human exposure to PCL-R positive individuals using fractal geometry principles. He is emphatic to say: "We are all fractals of Adam of Eve".

     

    During his research on PCL-R positive individuals, Mr. Costa has accidentally discovered the Synthetic Psychiatric Disorders (SPDs) — term coined by him — , further systematized it and successfully tested his findings in the Marie Curie Institute in Luxembourg and in École Militaire in Paris, but never published his works. Mr. Costa´s findings on Synthetic Psychiatric Disorders (SPDs) have a vast array of applications ranging from fraud prevention and detection in Social Security and in the insurance industry to media sector regulation.

    Neurolinguistics & Psychiatry

     

    Positive Shock Treatment Theory

     

    During 7 years of investigation in multiple individuals in real life situation, Mr. Costa developed his first theory on Positive Shock Treatment. As per Mr. Costa´s First Theory on Positive Shock Treatment, “A positive trauma of same intensity, kind and circumstances, in opposite direction, cancels the effects of a negative trauma.”

     

    In summary, Mr. Costa explains: “Positive Shock Treatment applies in individuals of any age and will be effective (if and) only if the events are real and occur in real life situations. In a simple example, a child who has been yelled at with rage “you are no good!” shall recover to the zero point of trauma if the parent yells at the child “you are good!” in a different moment, but with the same intensity, rage and circumstances of the original traumatic event (…); in a more complex example, a person who has been kidnapped and brutally abused shall recover to the zero point of trauma if (and only if) the person is kidnapped again in the same (or similar) circumstances and brutally forced to enjoy good life experiences. A new trauma of the same intensity of brutality (in the positive direction) is indispensable to compensate the effects of the original trauma (in the negative direction)". Positive Shock Treatment is effective in a vast array of psychiatric disorders in all spectrum of compulsion, obsession and depression, from child abuse cases to complex trauma caused on victims of crimes of torture and terror, and has shown results even in patients with esquizofrenia”.

     

    Costa Syndrome

     

    While Mr. Costa studied and tested his findings related to his Theory on Positive Shock Treatment in Hospital Sirio Libanês and Hospital Albert Einstein in São Paulo, and in Psychiatry Institute of Santa Catarina, he accidentally discovered a rare psychiatric disorder which reshuffles short term memory in patients who suffered negative trauma events.

     

    Individuals who suffer from Costa Syndrome (named after him) “suffer a complete reshuffle in short term memory, causing a temporary short term memory loss and confusion which lasts until the trigger event is over. (…) short term memory will re-initialise and gradually resume activities to the regular state of functioning in periods ranging from 24 days to less than 30 minutes, depending on the case (…)” he explains.

     

    Mr. Costa did not publish his findings on Costa Syndrome or treatment for short term memory loss. He adds: “ Regarding treatment for memory loss, I respect the line of research University of Pennsylvania is developing under Darpa financing. The problem there is not the timing of the electrical impulse, but the amperage. Instead of generating the electrical impulses, they should try to recycle the electric current used by the brain cells with a conductor or semi-conductor. This will eliminate their casualties even if they miss the timing of the electrical impulse by a mili second. Eventually, they also tend to find the cure for migraine and other types of headaches.”

     

    Regarding his findings on psychiatry, Mr. Costa is emphatic to say: "Anxiety (also known as “lack of resilience”, also known as “lack of heart”, also known as “lack of faith”, also known as “Abra”) is the mother of all evil”.

     

    Human Enhancement

     

    Mr. Costa´s famous quote “Everything we clean tends to get better” means that a man should clean himself, his home, and his affairs up to the maximum point possible. Mr. Costa firmly believes and advocates that all men should strive to return to the practice of house keeping. “It brings us back to the time we had daily contact with fresh water.” Asked about his housekeeping abilities, he replied smiling: “I am better than Harry; I am not better than Philip.”

  • Education

    Mr. Costa is independent, self-taught and self-oriented, and has studied Finance and everything else he wanted in MIT OCW. He had a brief history in The Hague Academy of International Law, where he studied Private International Law. Additionally, Mr. Costa holds a Degree in Law and Specialization in International and Comparative Law in Catholic University of Brasilia.

  • Religion

    Mr. Costa was raised as a New Christian, of Jewish origin, who became a quasi-atheist and, through mathematics and science, reverted to Islam at the age of 37. He explains: “David, Peace and Blessings of God Be Upon Him, is my Father; Prophet Muhammad, Peace and Blessings of God Be Upon Him, is my Father in Law. God, The Most Kind and Most Merciful, is the Greatest."

  • Fabrizio Costa in the News.

    Fabrizio Costa on M&A, Foreign Direct Investment, Sub-Sovereing Initiatives, and more.

    Finance and M&A

     

    1. Wall Street Journal: KBW acquires BRPar Oil & Gas Assets

    2. Wall Street Journal (Brazil): KBW acquires BRPar Oil & Gas Assets

    3. Latin Finance: Discussing Infrastructure

    4. Valor Econômico: KBW acquires BRPar Portfolio 

    5. Portos & Navios: KBW acquires PetroCity

    6. Brazilian National Association of Economists: KBW Acquisition

    7. Folha Vitória: KBW acquires BRPar assets in oil&gas, mining and construction

    8. National Association of Shipbuilders: KBW acquires PetroCity

    Foreign Direct Investment

    Innovation & Development. GCC.

    1. Fabrizio Costa on Entrepreneur Middle East: https://www.entrepreneur.com/article/247678

    Regional Newspapers. Brazil.

    1. St. Catarina News: Saudi Prince Investments in SC

    2. St. Catarina News: Invest in St. Catarina Program

    3. St. Catarina News: Announcement of KBW

    4. St. Catarina News: Investment Attraction Program

    5. State Assembly Official News: KBW in Santa Catarina

    5. Tocantins News: Oman Investment Interests