Equity investment in Darby Latam III: Supporting SME growth in Latin America

Brazil Chile Colombia Ecuador Mexico Peru Uruguay Multi-country Latin America and the Caribbean
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Equateur, hommes, containers
Darby Latam PF III, a fund dedicated to Latin America, mainly targets family businesses to support their development and professionalization via innovative financing.
Client presentation

Darby Latin America Private Debt Fund III (DLAPDF III) is a mezzanine/structured debt fund dedicated to Latin America. Its priority countries are Brazil, Colombia, Mexico and Peru.
Latin America was the pioneer market for Darby, a manager set up in 1994, but it now operates in both Latin America and Eastern Europe and Asia.

Project description

The fund is targeting 10 to 13 operations for companies, mainly family businesses, and midcaps, with little or no debt, incomes denominated in hard currencies, stable cash flows, and a management with a high-quality track record.
The fund will offer these companies structured debt solutions (senior or mezzanine), generally denominated in USD, to finance their growth.
The fund will target Brazil, Mexico, Colombia and Peru.

Project impact

The project will contribute to local employment, which will especially benefit women. Indeed, some 3,000 jobs, including 50% of female employment, will be created or maintained in the companies invested in by the fund.
More generally, the project will contribute to private sector development by supporting the growth of the target companies, including SMEs, via innovative and relevant financing tools which are neglected by local banks for this client segment.  
Finally, the fund will strengthen the professionalization of companies, both in terms of their management and their governance and environmental and social approach. This will ultimately make it possible to mobilize private capital.

Date of signature of the project
Brazil Chile Colombia Ecuador Mexico Peru Uruguay Multi-country Latin America and the Caribbean
Financing tool
17 000 000 Euros
Amount of funding
Equity investment of USD 20m
Financing details