Sao Paulo, Brazil, January 28, 2013—IFC,
a member of the World Bank Group, invested BRL 60 million, approximately
$29 million, in Gávea Crédito Estruturado FIDC (Gávea FIDC), a Brazilian
fund established to provide long-term debt financing and advice to viable
private entities that lack access to traditional funding sources.
The investment will not only expand access to finance for funding-constrained
companies and support jobs, it will also help promote capital markets development
in Brazil. Gávea Credito Estruturado Gestão de Investimentos Ltda. (“Gávea
Crédito Estruturado”), the fund manager, has created an innovative capital
markets vehicle to access funds from institutional investors such as pension
funds, insurance companies, and asset management firms.
This will help address the deficiency of long-term lending from private
sector entities in Brazil, which exposes many strong companies to refinancing
risks and reduces their efficiency and competitiveness. Currently, almost
40 percent of all lending to companies in Brazil is provided by BNDES,
the state-owned development bank, while the remaining 60 percent is provided
by commercial banks mainly on a short-term basis.
“We are honored to receive an investment from IFC in our structured credit
fund," said José Berenguer, CEO and CIO of Gávea Crédito Estruturado.
"The IFC investment will support our focus on developing and enhancing
governance of Brazilian middle-market companies and facilitate their access
to long-term funding from both Brazilian and international capital markets.
It will also allow us to maximize the positive social, economic, and environmental
impacts of these companies, which have driven Brazilian economic growth
in recent years and will contribute even more in the future."
IFC's investment in senior, mezzanine subordinated, and junior subordinated
quotas of Gávea FIDC will be accompanied by support for stronger environmental
and social standards and financial practices. This will make the fund more
sustainability and set a broader example for Brazil’s private sector.
“We are very pleased to partner with Gávea Crédito Estruturado to help
address an important gap in the local capital markets,” said Paolo M.
Martelli, IFC's Regional Industry Director for the financial sector in
Africa, Latin America and the Caribbean. “Their new debt fund is an innovative
financing vehicle that will create a longer debt yield curve in Brasil
and will demonstrate the potential of investing in funds like it in the
country and elsewhere in Latin America."
The investment is consistent with IFC’s strategy in Brazil to position
viable companies to grow and promote access to long-term credit for the
private sector. IFC’s strategy also emphasizes improving the country’s
overall competitiveness, supporting job creation, and disseminating durable
environmental and social standards.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
Based in Rio de Janeiro, the Gávea Group is one of Brazil’s leading alternative
asset management organizations. With approximately $6.6 billion of assets
under management, Gávea offers its clients a broad range of investment
products, including hedge funds, private equity, structured credit funds,
real estate funds and longer-term investments. Gávea invests across both
emerging and broader international markets, with a macroeconomic, research-intensive
investment process. With offices in Rio de Janeiro and São Paulo, Gávea
has over 150 employees. Gávea Credito Estruturado was founded in May 2012,
focusing on structured credit products.
For more information, visit www.gaveainvest.com.br.