Darby Latin American Private Debt Fund III

Equity : August 2018

BIO has invested USD 10 M in equity in Darby Latin American Private Debt Fund III, a senior debt fund aiming at providing long term debt financing to private middle-sized companies in Latin America.

Amount

€ 8,570,582.00

Type of investment

Equity

Development impacts

Local economic growth
Private sector consolidation/innovation

Beneficiary locations

Latin America and Caribbean: Brazil, Colombia, Dominican Republic, Ecuador, Peru

Investment field

Investment Companies & Funds

Activity

SME Fund

Organisation

Darby Latin American Private Debt Fund III

Website

https://www.darbyoverseas.com/darby/index.jsp

Domicile

Canada

The Darby Latin American Private Debt Fund III is a senior debt fund aiming at providing scarcely available long term debt financing to private middle-sized companies in Latin America. The Fund will invest primarily in Brazil, Colombia, Peru and Mexico, and can opportunistically invest in Dominican Republic, Ecuador, Chile and Uruguay. Though generalist, the Fund focuses on the following sectors: infrastructure & logistics-related assets, agribusiness, manufacturing, services and consumer products. Targeted financing objectives are growth capital, longer term debt refinancing and balance sheet strengthening and regional expansion.

Development impacts

Local economic growth
SMEs in the target markets of Darby face major issues to obtain financing from local banks, and when they succeed it is in the form of short-term loans with high interest rates, high collateral, and cumbersome lending procedures, which prevents them to fund their growth and expansion properly. By providing capital to these SMEs, Darby is expected to support SMEs growth and contribute to local economic growth.
Private sector consolidation/innovation
Know-how and technology transfer to investees:

Darby intends to play an active role at the level of the governance and value add of portfolio companies, through observer seats or sub-committee seats, or change in management when required.

The Fund aims at being involved in establishing good corporate governance practices that will allow businesses to mitigate risk, safeguard against mismanagement and attract further investments and capital that will fuel their growth

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

2W

Brazil

2W is a Brazil-based integrated renewable energy generation and energy trading platform dedicated to the free energy market customers in Brazil. 2W ranks among the top ten independent energy traders in Brazil based on volume traded.

Abengoa Peru

Peru

Abengoa Peru is an Engineering, Procurement and Construction (EPC) contractor and Operation & Maintenance (O&M) service company of energy, mining, water and industrial projects.

Biopas

Colombia, Ecuador, Peru

Pharma Consulting Group S.A., also known as Biopas, is a speciality pharmaceutical distribution company focused on in-licensing, selling, and marketing innovative prescription pharmaceutical products, cosmetics, and medical devices. The Company has a presence in 13 Latin American countries, including Colombia, Peru, Ecuador, Chile and Argentina, and operates in five main business units: Immunology, Rare Diseases, Central Nervous Systems and Oncology, Speciality Care, and Dermatology.

Cordeiro

Brazil

Cordeiro is a Brazil-based 40-year-old corporation that manufactures highly specialized copper and aluminum wires and cables sold mostly to key players in the construction, energy and industrial sectors.

IBT Health

Peru

IBT Health SAC is a Peruvian company that provides medical and nonmedical services such as nephrology, radiology, odontology, etc. as well as medical equipment, medicines and other supplies to VMT Salud SAC and Callao Salud SAC, companies that manage the hospitals Guillermo Kaelinde la Fuente and Alberto Barton Thompson in Lima, Peru.

NEOgas

Energy

White Solder

Brazil

White Solder produces tin ingots, tin-based alloys and solders that are mostly sold to companies in the electronics, chemical engineering, and automotive industries. The Company has 20 years of operating experience, is the second-largest smelter of tin ore and producer of tin-based products in Brazil, and is one of only two companies in the country that are certified members of the London Metal Exchange.