Gávea raises R$1bn credit fund

Gávea’s R$1bn credit vehicle – designed to address lending deficiencies in Brazil’s private sector – counts the International Finance Corporation as an LP.

Gávea Investimentos has raised R$1 billion (€372 million; $503 million) for its Crédito Estruturado FIDC fund, falling short of the R$1.25 billion target it had set in the vehicle’s prospectus, according to a Valor Economico report.

Crédito Estruturado FIDC will provide long-term debt financing to Brazilian private companies, addressing “the deficiency of long-term lending from private sector entities in Brazil, which exposes many strong companies to refinancing risks and reduces their efficiency and competitiveness”, according to an International Finance Corporation release.  

The IFC has committed $29 million to the fund. 

“The IFC investment will support our focus on developing and enhancing governance of Brazilian middle-market companies and facilitate their access to long-term funding from both Brazilian and international capital markets,” said Gávea Crédito Estruturado José Berenguer in the IFC release.

A spokesperson for Gávea could not be reached for comment. 

Gávea Investimentos was founded in 2003 by Armino Fraga and Luis Henrique Fraga, according to its office. Beyond private equity and structured credit, the firm is also operates hedge, equity and real estate strategies.