The Multilateral Investment Fund announced today the
approval of a $4 million equity investment and a $75,000
technical cooperation grant for the Dynamo Venture
Capitals DVC II Investment Fund for Brazilian Small
and Medium-Sized Companies.
The fund will provide equity and convertible debt financing,
financial and technical advice and value-added governance to
approximately 12-15 Brazilian companies focused on
technological innovation. The funds projected maximum
capital will be 60 million reais (approximately $21 million)
over a 10-year maximum lifetime.
The fund, selected in a competitive process, will help close
the gap for small and medium-sized growth companies that
currently have no access to long term financing and will
increase their operating standards. The investment strategy
will focus on well-managed companies in sound industries; a
value-oriented, long-term approach to investments; and the use
of corporate governance as a tool to improve returns.
In addition to the resources from the MIFs Small
Enterprise Development Facility, the fund expects to attract
private sector investors and several Brazilian pension
The Multilateral Investment Fund is an autonomous fund,
administered by the Inter-American Development Bank, that
provides grants, investments and loans to promote private
sector growth, labor force training and small enterprise
modernization in Latin America and the Caribbean.