Stratus Capital Partners LP (the "Fund") is a multisector private equity fund that will invest in mid-sized Brazilian companies, supporting businesses with the potential to grow revenues—organically or through acquisitions—during the investment period. The Fund will target a number of different sectors, including products for the country’s growing middle class, services, specialized retail, and entertainment. The Fund’s target is US$200 million, and the first closing is expected to take place in early 2012.
The founders of Stratus were pioneers in Brazil’s private equity market and have played a significant role in the mid-market segment. Stratus is perceived as a highly sophisticated local investor, with a trusted reputation among investors and mid-market firms. The Stratus team has been singled out for its achievements in promoting corporate governance, both at the company and Fund levels.
The IIC’s participation in the Fund, for up to US$10 million, is expected to play a important role in attracting additional international investors and sending a strong signal from an institution with significant exposure and experience in the region. The IIC would be making a follow-on investment on behalf of the IDB Group, thus supporting one of the MIF’s most successful fund managers and lending continuity to the efforts of the Group. The IIC’s involvement is instrumental for the coexistence of local players in a highly dynamic market with very well-known international players. Furthermore, the IIC’s participation in the Fund would benefit a segment of small and medium-sized enterprises that has been relatively underserved by the main private equity funds in Brazil. Stratus is making a conscientious effort to identify investments in regions and cities outside Brazil’s metropolitan areas.
This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. Stratus has environmental and social review procedures in place. In addition, it is developing a set of standardized operational procedures and a manual based on the U.N. Principles for Responsible Investment, which will encompass an Environmental Management System. Each company in which the Fund invests must comply with the environmental laws, regulations, and standards of the respective applicable jurisdictions, as well as with applicable IIC environmental guidelines. Companies in which the Fund invests will be required to provide evidence of compliance with all applicable laws, regulations, and standards regarding the environment and occupational health and safety.