IDB Invest, a member of the IDB Group, will invest up to $30 million in capital in Kandeo 3D, a private debt fund that will provide financing to mid-sized companies in Mexico, Colombia and Peru. The fund will have a life of 9 years and will be managed by Kandeo Investment Advisors.
The financing provided to Kandeo 3D will focus on companies that require tailored and long-term financial solutions to support initiatives that can revitalize their operations and generate growth in the medium term.
This deal seeks to increase the supply of private debt, which consists of an alternative source of funding to complement commercial bank financing, while reducing the existing financing gap available for medium-sized companies. It is intended to reactivate growth and accelerate the pace of recovery of companies, maintaining economic production and financing investments that improve productivity.
IDB Invest’s participation, as an anchor investor, will be key for the fund to start operations and attract capital from institutional investors. IDB Invest will also provide advisory services aimed at strengthening Kandeo's gender inclusion and diversity policies and practices.
This deal can potentially contribute to three UN Sustainable Development Goals (SDGs): Gender equality (SDG 5), Decent work and economic growth (SDG 8), Reduction of inequalities (SDG 10).
In the context of the crisis generated by COVID-19, IDB Invest is committed to investing capital in private debt funds, giving priority, among others, to companies that require personalized and long-term financial solutions in the region.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Kandeo Investment Advisors
Established in 2010, Kandeo has a long history of investing in companies in Latin America. It has a team of professionals dedicated to the operation and management of investment funds. Kandeo has extensive experience in financial structuring, credit negotiation and placement of private debt instruments in companies belonging to various sectors