IDB Invest, the private sector arm of the Inter-American Development Bank (IDB) Group, recently executed an equity investment of USD 10 million in Bozano Investimentos, a Brazil-based private equity and asset management firm. The investment will be directed to the Bozano Growth Capital Fund, an equity fund active in education, health and consumer goods. The funds will be targeted specifically to “family-controlled midsized companies…in the healthcare sector.”
The investment agreement stipulates that Bozano Investimentos will adopt IDB Invest’s Women Empowerment Principles (WEP) Gender Analysis Tool, requiring Bozano Investimentos’ investees to collect data and develop policies relating to gender equity.
Founded in 2013, Bozano Investimentos is a Brazil-based investment firm that operates its own private equity funds, advises other firms on asset management and manages assets on behalf of other firms. The company invests in technology, education, healthcare and consumer goods via the following funds: Bozano Growth Capital Fund, Bozano Educacional I, Bozano Educacional II, Bozano Investimentos Education Ventures, Bozano Fundo de Investimento em Participações (FIP) Criatec 2 and Bozano Fundo Brasil de Governança Corporativa (FBGC). From its inception through June 2018, the firm issued approximately 60 investments totaling BRL 1.2 billion (USD 318 million). Its assets under management total approximately BRL 3.5 billion (USD 929 million).
Headquartered in the city of Washington, IDB Group serves Latin America and the Caribbean through four members: IDB, IDB Invest, the Inter-American Investment Corporation (IIC) and the Multilateral Investment Fund (MIF).
IDB is a development finance institution that was founded in 1959 and has 48 member countries, including 26 countries located in Latin America and the Caribbean. It works with governments, companies and NGOs to finance sectors such as financial services, health, education, renewable energy, transportation and telecommunications for the promotion of “social inclusion and inequality, productivity and innovation, and economic integration.” It also provides technical assistance and research in these areas. During 2017, IDB disbursed loans totaling USD 10 billion and had USD 89 billion in loans outstanding.
IDB Invest is a US-based financial institution specializing in debt and equity financing for small and medium-sized enterprises (SMEs) and other private-sector projects in Latin America and the Caribbean. The institution provides consulting services and “finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region.” During 2017, it executed 234 loans, guarantees and other contracts valued at a total of USD 3.2 billion. As of 2018, its portfolio is valued at USD 11.2 billion and spans 23 countries.
IIC provides financial and advisory services to SMEs, financial service providers, corporations and government-backed enterprises. As of March 2018, IIC reported quarterly loan disbursements of USD 101 million and outstanding loans of USD 1 billion.
MIF invests in microfinance funds, venture capital funds and projects that support SMEs. During 2017, MIF launched 36 projects costing a total of USD 24 million.
By Nicholas Galimberti, Research Associate
Sources and Additional Resources
IDB Invest press release
https://www.iadb.org/en/news/idb-invest-invests-bozano-investimentos-expand-access-financing-midsized-companies-brazil
Bozano Investimentos background
http://bozanoinvestimentos.com.br/en/about-us/the-company/
Bozano Investimentos holdings
https://www.crunchbase.com/organization/bozano-investimentos/investments/investments_list
Bozano Growth Capital Fund background
http://www.iic.org/en/projects/project-disclosure/12161-01/bozano-growth-capital-fund
MicroCapital Brief; June 11, 2018; IDB Loans $10m to Factotal for SME Leasing, Factoring, Vendor Finance in Chile, Peru
https://www.microcapital.org/microcapital-brief-idb-loans-10m-to-factotal-for-sme-leasing-factoring-vendor-finance-in-chile-peru/
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