IDB Invest invests in Bozano Investimentos to expand access to financing for midsized companies in Brazil

IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, made an equity investment of up to $10 million in Bozano Growth Capital Fund. The Fund will invest growth capital in family-owned or family-controlled midsized companies with high growth potential operating in Brazil.

Middle-market companies are main drivers for economic growth in Brazil, accounting for 30% of Brazil’s GDP and representing one of the main sources of income and employment. The operation will contribute to increase the availability of private equity and will reduce the financing and investment gap for middle-market companies in Brazil, contributing to promote economic growth through the investee companies.

The Fund manager’s scope will include the implementation of the IDB Invest Women Empowerment Principles (WEP) Gender Analysis Tool in its operations and will require its investees to conduct the survey on a yearly basis. WEP consists of a self-assessment tool for gender equality performance across the company and will identify potential gender policies and practices to promote equality.

The Fund will also provide expertise on sustainable practices to the investees, with enhanced governance and financial control, and contributing to strengthen environmental and social policies. The Fund is expected to invest in well-positioned companies in Brazil and has a defined focus in the healthcare sector.

IDB Invest will play a key role as an investor, ensuring that international performance standards are being followed and sharing the knowledge acquired in the private equity industry over recent years, including enhanced deal selection and portfolio monitoring.

Original source: IADB
Published on 06 June 2018