Perhaps unsurprisingly, Richards Butler's resident partner in Sao Paulo, Stephen O'Sullivan, believes the financial crisis that hit Brazil last week will have little impact on his firm's practice.

"A lot of our work is geared towards direct investment in Brazil," he said. "We do a lot of mergers and acquisitions work, joint ventures and project finance.
We are less involved in capital markets work.
"The current troubles haven't had any particular impact," added O'Sullivan, who has lived in Brazil since Richards Butler first opened its office in Sao Paulo five years ago.

But, according to O'Sullivan, the situation might not be so rosy for Clifford Chance and Linklaters – which have both opened offices in Sao Paulo during the last two years.

"I know the capital markets are pretty much dead," he said. "And my understanding is that the other foreign firms in Brazil are mainly here for capital markets work. I think it is probable they will be feeling the impact strongly."

O'Sullivan said his firm is rather different, though, having linked up with local firm Albino Advogados Associados and taken on a Brazilian partner, Antonio Carlos Rodrigues do Amaral.

"I think we are offering a broader range of things, including local Brazilian law.

We don't necessarily feed off Richards Butler's international work, but have established a local practice in its own right with a broad portfolio of clients."

O'Sullivan said he still feels there is scope for other foreign firms to open in Brazil, despite the capital markets crisis. "There isn't a lot of competition," he said, "and Brazil is a huge country. A lot of investors are not blind to that.
"Mergers and acquisitions, project finance, and especially privatisation transactions are all a major source of work here.

"And because Brazil is opening up to foreign investment, a lot of local companies are starting to appreciate the value of having a relationship with international companies.

Because of what is happening with the currency, it is even more important to have an international presence.

"I think we will see many more international joint ventures, where companies are looking for a cash injection and better support so they can compete in the international markets.

My own view, looking forward to 1999, is that we will see a continuing high level of activity, but it will obviously be concentrated in certain sectors."