The fund will be sponsored by the management team (51%) and CS (49%). The management team, headed by Garcia and Medeiros, has worked together for over a decade and successfully invested in numerous companies in the region.

The Fund has a target commitment size of $200 million. The proposed IFC investment is $20 million in equity.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Fund is structured as a limited partnership under the laws of Ontario, Canada and will invest primarily in Brazil, Argentina and Chile as well as companies that have a regional focus. The management team will be based out of Sao Paulo and Buenos Aires.

The Fund will contribute to the economic development of Brazil, Argentina and Chile by helping to provide scarce development capital that is not likely to be satisfied by the region’s debt and equity capital markets. The management team expects to take an active role with its portfolio companies to ensure that they have sufficient resources to pursue their growth strategies. It will work with its investee companies to strengthen corporate governance, increase operating performance, and manage relationships between other shareholders. The growth and success of these companies, in turn, will have a positive impact on exports, job creation, development of employee skills, transfer of knowledge and consumers in the South American region.

- Supporting a newly independent fund and thus playing a catalytic role in mobilizing foreign / international capital;
- Aligning fund structure and terms with international best practice;
- Supporting the Latin American private equity asset class that has not been able to attract significant amounts of capital in recent years.

This project has been classified as category FI according to IFC’s Environmental & Social Review procedure. During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of the IFC FI Exclusion List and/or the applicable National Social and Environmental Laws and regulations and/or the IFC Performance Standards.

IFC will also review the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required. The Fund Manager will be required to:

- develop and/or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- identify responsible, qualified persons to manage and implement the SEMS;
- commit to implement SEMS and ensure that investments are in compliance with the Applicable Requirements;
- take action to remedy any gaps in SEMS implementation on an ongoing basis; and
- submit a periodic report to IFC as per a format to be provided by IFC.