IIC Approves US$10 Million Equity Investment in Latin American Private Equity Fund II, L.P.


WASHINGTON, D.C. - On December 21, 2000, the Board of Directors of the Inter-American Investment Corporation (IIC)1approved an equity investment of up to US$10 million in The Latin American Private Equity Fund II, L.P. The fund is sponsored by Advent International Corp., one of the world's largest private equity investment firms whose aim is to invest mainly in securities of privately held middle market growth-oriented companies in Latin America. The Fund has a term of 10 years, and a target capitalization of US$500 million.

IIC's active participation in the fund will help strengthen and modernize medium-size companies in Brazil, Argentina, Mexico and other countries of the region and help improve governance practices. The Fund will also have an important catalytic effect by attracting other institutional investors and facilitating the flow of fresh capital to the region and support a private equity effort to consolidate industries to improve economies of scale, employment and efficiency in the region.

The Fund is expected to reach between 30 and 40 final beneficiaries at full capitalization over its expected life, create between 900 and 1600 jobs and contribute from US$100 million to US$240 million to the regional GDP.

1 The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank 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 borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. The IIC has thirty-seven member countries: twenty-six in Latin America and the Caribbean and eight in Europe, plus the United States, Japan, and Israel. For further information on IIC's activities please contact Mr. Jorge Roldán at 202-623-3948.

Contact: Jorge Roldán

Telephone: (202) 623-3948

Email: jorgero@iadb.org