IIC's Participation In Investment Fund Supports The Development Of Small And Medium-Size Enterprises

05/03/2000

The investment will benefit small and medium-size Mexican companies undertaking venture capital operations WASHINGTON, D.C. - On May 4, 2000, the Board of Directors of the Inter-American Investment Corporation (IIC) approved an equity investment of up to $8 million in Multinational Industrial Fund (MUIF), a private investment fund created to generate long-term capital gains through equity and quasi-equity investments in small and medium-size Mexican companies that undertake joint venture capital operations with foreign companies to generate exports.

IIC funds will enable MUIF to i) support the establishment and expansion of small and medium-size companies in Mexico that lack access to equity resources; ii) support private investment to generate joint venture capital operations between local and foreign companies and thus enable technology transfer and promote exports; and (iii) foster the democratization of capital through listings on the stock exchange.

The Fund is expected to make at least fifteen investments throughout its expected ten-year life, create around 450 jobs, and generate $300 million annually for Mexico's GDP.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org