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.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting Latin America and the Caribbean businesses. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.
About Bozano Investimentos
Bozano Investimentos is a Brazilian alternative asset management firm. Since 2009, Bozano Investimentos is investing successfully in the local market. Bozano Investimentos focuses on creating value through strategic operational guidance and improved governance. Bozano Investimentos’ private equity team has successfully invested over the past nine years approximately R$1.2 billion of growth capital into twelve Brazilian companies whose combined value, including distributed capital and estimated market value, is currently R$2.2 billion (US$650 million approximately). Currently, the firm has over R$3.0 billion (US$1 billion approximately) in assets under management.