Private equity-style investments continue to pile into Brazil. One new deal suggests there’s appetite for much smaller, off-the-radar screen kinds of investments.
The investment by French Truffle Capital in Confrapar, more of a seed capital player than a fully-fledged private equity firm, is compelling. Confrapar is small – it had just R$75m in investments last year - and it is based outside the main São Paulo-Rio axis in inland Minas Gerais. Actually, while the stereotype of the state is rustic/cow belt, capital Belo Horizonte is a city of 2.5m and Minas is arguably the second most important state in the Federation. Moreover, Confrapar has been successful in working with Brazil’s array of public companies that provide funding for small tech start-ups, giving it a safer profile than might be initially assumed.
The firm specializes in early stage venture capital and has tapped a range of funds. Initially, it attracted 40% of the monies from the Federal Ministry of Science and Technology’s Federal Innovation Agency (FINEP), whose INOVAR programme supports innovation and 30% from the state of Minas through Fapemig and the BDMG for its first fund, HorizonTI. The remaining 30% comes from 30 private Brazilian investors including Confrapar’s own partners, high net worth individuals, and family offices. HorizonTI typically invests about R$2m in its target companies. It has invested in eight companies
Carlos Eduardo Guillaume, the young CEO at Confrapar, is personable and intelligent and has been working hard to secure funds from Brazil. This new investment gives the firm a platform for much faster growth and kudos in winning international funds.
Get Real – Brazil’s curency is probably near a bottom
Brazil capital markets continue to wilt – no danger of improvement…
No to complacency on forests. Greenpeace calls for Federal government responsibility
WHARTON Reasons for Amazon optimism: highlights of Roberto Waack interview
World Cup: brimming with delays
- by Publication
- by Date