The Inter-American Development Bank’s Multilateral Investment Fund announced today the approval of a US$5 million equity investment and a US$100,000 technical cooperation grant to PYMAR Fund for a project to promote the development of a venture capital industry in Argentina.
The Fund will provide equity financing to 5 to 12 small enterprises with up to 100 employees and annual sales up to US$ 5 million, from sectors in which Argentina has clear comparative advantages such as information technology services, receptive tourism, biotechnology, medical devices and services, outsourcing, multimedia contents, specific niche opportunities in the food industry, and the metal mechanics sectors.
“The fund aims at filling a financing gap for Argentine small enterprises which have growth potential but face difficulties in acquiring long-term financing,” said MIF team leader Susana García-Robles. “It will also contribute to increase these companies governance and operating standards.”
An international company, GEC, a subsidiary of Fundación Empresa y Crecimiento/FEC, will manage the fund. This company will hire the services of the local management company Holdinvest Gestión S.A. that will be in charge of the day-to-day operations of the fund. The fund will have an eight-year life, with two one-year possible extensions if agreed by the shareholders.
MIF, an autonomous fund administered by the IDB, supports private sector development in Latin America and the Caribbean, focusing on micro-enterprise and small business.