Zion Gestão de Recursos

A Zion Gestão de Recursos Ltda. (Zion Invest) is a São Paulo-based asset manager headquartered in Itaim Bibi (Av. Nove de Julho, 4,865, São Paulo/SP), CNPJ 97.543.940/0001-69, specialized in the death care niche — cemeteries, crematories, and funeral services. Founded by Francisco Caetano Garcia, it has a corporate structure formed by ten partners, including individuals and the holding companies Zion Participações e Investimentos S/A and Zion Capital S/A. The manager's total AUM is around R$ 95 million in consolidated net equity (6 operational funds out of 13 historically created — 7 canceled). In the universe of listed FIIs, its only active presence is CARE11 (Brazilian Graveyard And Death Care Services), with net equity close to R$ 249 million, complemented by an FIP with the same focus: Care 11 FIP Multiestratégia.

Track record and governance

CARE11 debuted on B3 in 2011, being the first Brazilian FII focused on the funeral sector — a pioneering positioning that never translated into returns for the unitholder. The fund has not distributed earnings since September 2021 and accumulates a total return of approximately -85% since the IPO. In 2024, it reported an operating result of -R$ 6.3 million and a net loss of -R$ 37.5 million. Governance underwent significant turbulence: administration migrated from Trustee DTVM to Mérito DTVM (base date July 2025), and the transition was troubled — the previous administrator withheld documents, delaying the 2025 audited financial statements. The custodian is Master S.A. CCTVM and the current auditor is Next Auditores Independentes (Blumenau/SC). A critical reputation point is the manager's low transparency: Zion does not publish regular management reports or maintain an active public presence, a stance that departs from the standard of the FII market and hinders independent monitoring by unitholders.

Strategy and funds under management

Zion's thesis was built entirely on the growth of Grupo Cortel — a pioneering holding company in Brazilian death care, with 16 cemeteries, 8 crematories, 2 cremapets, and funeral plans across 6 states. CARE11 holds 19.92% of Cortel Holding (3.47 million common shares) in addition to 3,080 burial plots at Cemitério do Morumby and real estate receivables. Over the years, the manager carried out partial divestments — such as the sale of 734 thousand shares of Cortel for R$ 38.6 million (a 42% markup over the 2018 cost) — without managing to distribute recurrent returns to unitholders. In August 2026, the General Unitholders' Meeting (AGE) approved the drafting of a Liquidation Plan, formally ending the thesis of value unlocking via IPO or the sale of Cortel: CARE11 is now moving toward an orderly liquidation. The manager also launched ZIFI11 (Zion Capital FII), a more recent vehicle with a similar focus on the funeral/Cortel sector, but outside the scope of this analysis.

Strengths and points of attention

• Pioneering and differentiated niche: The death care sector is structurally resilient (non-cyclical demand) and Grupo Cortel is the largest verticalized player in Brazil — the thesis of accessing this asset via an FII was unprecedented in the market.
• Underlying real assets with value: Cemeteries, burial plots, and the stake in Cortel represent tangible equity, with NAV per unit of R$ 34.64 — well above the market price.

• Almost five years without distributions: Since Sep/2021 no earnings have been paid, destroying the recurring income proposition that defines an FII.
• Transparency well below standard: Absence of regular management reports and access to the manager places Zion among the managers with the lowest disclosure in the market.
• History of operational conflicts: The administrator transition in 2025 resulted in document retention and delayed financial statements — a sign of structural fragility in management.
• Fund in liquidation: The August 2026 event ends the investment phase; the risk now is the execution of the liquidation plan and fair realization of the assets.

Which investor is this suitable for

At its current stage — fund in liquidation, without dividends, with a steep discount (P/NAV ~0.43) — CARE11 does not fit any classic FII profile. The only residual rationale is speculative: betting that the liquidation of the stake in Cortel (and the Morumby plots) realizes value above the market price. This requires high risk tolerance and an indefinite horizon. For new investors, the recommendation is to avoid it until the Liquidation Plan is formalized and the first divestments signal a reference price. Those who already hold units should monitor Mérito DTVM's communications regarding deadlines and divestment values — and watch whether the manager maintains the low disclosure standard during the process, which may indicate a risk of execution below potential.