JPMorgan Chase’s Gavea Investimentos is setting up a $2 billion fund, Bloomberg reports. The fund by the investment firm, founded by former Brazil central banker Arminio Fraga, is designed to acquire stakes in Brazilian companies.

Gavea manages $2.5 billion in three private-equity funds. The investment company will return proceeds from two of them to investors in 2011 as it starts the new one as early as this month.

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