Inter-American Investment Corporation Signs Equity Investment Agreement With Darby-Probanco Fund Ii, L.P.
03/17/2008Washington, D.C. - On March 18, 2008, the Inter-American Investment Corporation (IIC) signed a US$5 million equity investment agreement at its headquarters, thereby becoming an investor in Darby Probanco Fund II, a private equity fund managed by Darby. The fund specializes in the financial sector and is oriented chiefly toward investing in Central American institutions and, potentially, in the Dominican Republic, Mexico, and Colombia.
This is the IIC’s second equity investment in private equity funds managed by Darby and oriented towards the region’s financial sector. This second investment is expected to be as successful as the investment in the first fund. It should also act as a catalyst for expanding the fund by attracting other investors—chiefly from the private sector—interested in investing in medium-size financial institutions, especially those that target small and medium-size companies.
By investing in the fund, the IIC will be playing an active role in the consolidation of the financial system in the fund’s target countries. It will do so by offering risk capital and innovative products, especially in Central America and the Dominican Republic. The fund seeks to alleviate the marked shortage of risk capital in these countries by earmarking at least 60% of its resources for them.
Signing for the IIC was Luis Alberto Moreno, Chairman of the Board of Executive Directors of the Inter-American Investment Corporation. According to Mr. Moreno, "The positive outcome of the operation with Darby will help strengthen the financial institutions in which the fund invests by supporting consolidation and competition in the sector."
Richard Frank, CEO of Darby Overseas Investments, Ltd., thanked the IIC and the IDB Group for their support and stressed that the region will benefit from cooperation between them. In addition to the IIC’s investments in financial sector funds, the IDB supported the Darby Latin American Mezzanine Fund. This fund has invested successfully in subordinated debt and quasi-equity throughout the region, focusing on infrastructure projects.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, visit www.iic.int.
Contact: Carlos Roa
Telephone: (202) 623-3955