São Paulo, March 15, 2021 - IFC, a member of the World Bank Group, announced an investment in Vinci Impact and Return IV, a Brazilian private equity fund, to engage in impact investing and target the small and medium-sized enterprises (SMEs) segment in the country. The fund will make investments that have a clear strategy or business model to serve low-income populations. At least 35% of commitments will be allocated in the northeast region of Brazil, one of the most underserved regions in the country.
IFC's $20 million investment in the Vinci Impact and Return IV fund, managed by Vinci Capital Partners, highlights IFC's strategic priorities of private sector growth, job creation and mobilization of private capital. The investment will also support the foundation of an inclusive recovery by helping to close financing gaps and bringing considerable operational expertise to a portfolio of SMEs and mid-market companies to increase productivity levels, helping with the income generation for the country.
"In a context of depressed domestic and international demand, this investment provides a timely opportunity for IFC to play an important countercyclical role in Brazil during a period of crisis. The project's objectives support Brazil's need for improving investment and productivity levels, especially in the critically important SME segment", said Carlos Leiria Pinto, the IFC's Country Manager in Brazil.
The investments from the Vinci Impact Fund will be in high impact and resilient sector verticals such as healthcare, education, nutrition, specialized retail, and value-added services. It aims to improve access to capital for small and medium-sized companies in Brazil, supporting their resilience, growth, and ability to create jobs amid the challenges of the COVID-19 pandemic.
As greater access to financing spurs the development of the private sector and leads to sustainable development impact, the fund will also have strong alignment with the United Nations' Sustainable Development Goals (SDGs) and high environmental, social and governance (ESG) standards as pillars of its investment and value-creation strategy.
This is IFC's second commitment to Vinci Capital Partners, after investing in VCP III in 2019. With this new investment, IFC expects to send a strong signal to other fund managers to adopt best practices and formal impact standards and contribute significantly to increase the sustainability of the broader Brazilian private equity market.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About VINCI CAPITAL
Founded in October 2009 by a group of very experienced managers in the Brazilian financial market, Vinci Partners is a leading independent asset manager in Brazil, with a strong growth track record and leading franchises in private equity, real estate, infrastructure and public equities, according to data published by ANBIMA. Since January 28th, 2021, Vinci is a Nasdaq-listed company with over R$46.1 billion in AUM (approximately US$ 8 billion) as of September 30, 2020.
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