São Paulo, Brazil, February 23, 2023 - IFC is investing in Vinci Capital Partners IV, a private equity fund managed by Vinci Partners, to support the growth of medium-sized enterprises, which are key to job creation, increased productivity and sustainable development in Brazil.
IFC's backing includes an equity investment of up to $50 million and additional funding to co-invest with the fund. This project aligns with IFC's country strategy in Brazil, which aims to promote private sector growth, job creation, and market competitiveness.
Vinci Capital Partners IV will provide growth capital to medium-sized enterprises in vital sectors of the Brazilian economy, including health care, consumer and retail, education, financial services, technology, and agribusiness. The selection of these key sectors is in line with several economic and market trends in Brazil, including digitalization, aging population, health and wellness, sustainability, and convenience-seeking consumer base, such as through fast food restaurants and beauty shops. Vinci has experience of creating value in these areas.
Among its objectives, the fund will identify businesses owned or led by women and help expand their access to finance. Women entrepreneurs in Latin America and the Caribbean face more difficulty in accessing capital than men, with only five percent of private equity and venture capital funding going to female-owned businesses, according to IFC's report Moving Toward Gender Balance in Private Equity and Venture Capital.
IFC will also help Vinci Partners integrate gender elements into investment decision-making. This will include the implementation of a gender policy, as well as collecting and reporting on gender-based data from the fund and its portfolio companies.
"Access to private equity capital helps boost private sector development, support sustained economic growth and create jobs," said Carlos Leiria Pinto, IFC Brazil Country Manager. "IFC's new partnership with Vinci will help bridge the financing gap facing medium-sized enterprises and promote Brazil's inclusive development."
The new investment is IFC's third commitment to Vinci Partners, following an investment in Vinci Impact and Return IV in 2021 and another in Vinci Capital Partners III in 2019. IFC's investments are expected to help the fund attract capital from other international investors to support medium-sized enterprises in Brazil amid a global funding crunch.
IFC has been investing in Brazil's private sector since 1957 to address the country's most critical development challenges, including those of urbanization, social inclusion, competitiveness and productivity, and management of natural resources.
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 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.