Washington D.C., July 27, 2006—The
International Finance Corporation, the private sector arm of the World
Bank Group, will help finance the expansion of a post-secondary educational
institution, Anhaguera Educacional (AES) that provides good quality, affordable
education to lower-income students who live outside Brazil’s major urban
centers. IFC will do this by providing a $12 million loan to Fundo de Educação
para o Brasil – Fundo de Investimento em Participações (FEBR).
Atul Mehta, IFC Director for Latin America and the Caribbean, said, “For
Brazil’s large and young population, providing good quality education
to lower-income students is essential for ensuring sustainable growth and
reducing inequality. IFC is proud to partner with AES as it continues its
expansion to bring affordable education to future generations.”
Anhanguera Educacional is a for-profit, rapidly expanding education institution
in Brazil, focusing on lower-income students in the smaller cities of São
Paulo state. AES currently operates ten campuses in eight cities, offering
undergraduate and graduate degrees to over 20,000 students.
FEBR is the first private equity fund of its kind in Brazil focusing solely
on education. The fund, which is listed on the São Paulo Stock Exchange,
was structured and is managed by Pátria Banco de Negócios Ltda. and its
affiliated companies. Pátria is one of the most successful private
equity and investment banking institutions in Brazil with over 20 years
experience in the local market.
“AES combines the vision and characteristics that are associated with
success as IFC has learned through its years of investing in the private
post-secondary sector around the globe,” noted Guy Ellena, IFC Director
for Health and Education. “Through our investment in FEBR, we aim at establishing
a long-lasting partnership with Pátria and AES that will have a significant
impact on Brazil’s education market. We believe that IFC’s global experience
in the sector will be of value to AES and its sponsors.”
Alexandre Saigh, Managing Partner, FEBR, added, “Education is one of the
most important necessities for ensuring sustainable growth and reducing
poverty in future generations. AES has played a key role in providing high
quality education in Sao Paulo state and FEBR is pleased to have the opportunity
to assist in its further development.”
From the beginning, AES and its predecessor companies have stayed true
to the vision of its founders to provide good quality, affordable education
to lower-income students who live outside Brazil’s major urban centers.
Since 1994, when professors Jose Luis Poli and Antonio Carbonari
Netto founded their first independent campus in the city of Leme in Sao
Paulo state, AES has opened ten campuses serving more than 20,000 students.
In 2005, FEBR acquired a controlling stake in AES with Professor Carbonari
as AES’s CEO and Professor Poli as the academic director. AES’s business
model, based on a structured curriculum, a decentralized network of campuses,
and standardized delivery, allows the company to offer consistent and low-cost
curriculum delivery to its students.
Pátria has been instrumental in AES’s recent expansion and in developing
the company’s future growth strategy. It has also brought management experience
and financial discipline to day-to-day operations. Following major regulatory
reforms in the mid-1990s that provided incentives to the private sector
to invest in higher education, Pátria is confident that FEBR—through its
investment in AES—can benefit from significant opportunities in Brazil’s
IFC in Brazil
During fiscal year 2005, Brazil received the largest amount of IFC financing,
in dollar value, among Latin American countries. IFC invested $591million,
including $190 million in syndications, in sectors ranging from agribusiness
and transportation to manufacturing and the financial sector. IFC’s total
portfolio in Brazil was $913 million at June 2005.
IFC's strategy for Brazil focuses on enhancing clients' prospects for competitiveness
and growth, improving the country's social equity through voluntary actions
by the private sector, and continuing to promote sustainability. Since
1956, when Brazil joined IFC, the Corporation has provided $7.45 billion,
including syndications, for 162 companies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.