IDB Invest is a private sector arm of the Inter-American Development Bank that finances sustainable enterprises to help them achieve economic, social and environmental development in the region. The fund recently committed US$10M to Brazilian private equity firm Bozano Investimentos to increase the availability of private equity and reduce the financing gap for middle-market companies in Brazil. Bozano invests in innovation and tech, education, and consumer sectors.
According to the press release for LAVCA, middle-market businesses make up 30% of Brazil’s GDP and a significant portion of employment. The fund will focus on bringing mentorship for sustainable practices, as well as financial controls and gender equality principles to the companies in its portfolio.
This fund will also implement the IDB Invest Women Empowerment Principles (WEP) Gender Analysis Tool in its investments, requiring investees to self-survey every year to help promote gender equality across the company. The IBD plans to play an active role in the investments, including in deal selection and portfolio monitoring.
IBD Invest currently manages a portfolio worth US$11.2B across 23 countries, providing financial solutions and advisory services to companies across the Americas.
Read more in the original press release for LAVCA.