IDB Invest, a member of the IDB Group, signed a $20 million equity commitment in the HMC Andean Private Debt Investment Fund, established under Chilean law and administered by HMC SA AGF, a subsidiary of HMC SA (HMC), which is a fund management and distribution firm with a solid track record in Latin America.
The 7-year maturity fund will provide financial solutions to medium-sized companies in Peru, Colombia and Chile, helping to close the financing gap in this segment. The financing will be directed to companies that require tailored financial solutions to support growth opportunities and the reactivation of operations for companies negatively impacted by COVID-19.
This transaction seeks to increase private fund offerings, which consist of an alternative source of funding that complements the financing of commercial banking, reducing the financing gap available for medium-sized companies.
Access to the fund is expected to prepare companies in accessing capital markets in the medium term, through training and a more detailed due diligence focused on the requirements to issue in the capital markets. IDB Invest’s participation in the fund will be key to attract more institutional investors and for the fund to reach a size that allows it to effectively execute its investment strategy.
In addition, IDB Invest will provide advisory services focused on strengthening HMC efforts to close gaps in inclusion, diversity and gender equity in the fund, including the establishment of a recruitment program and mentoring for analysts. Likewise, the use of diagnostic tools and monitoring of gender equality practices and policies will be promoted with the fund and selectively for companies in the fund's portfolio.
This deal is expected to contribute to three Sustainable Development Goals (SDGs) of the United Nations: Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Reduced Inequalities (SDG 10).
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 $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
HMC Capital is a leading Latin American firm in alternative assets, in the following business areas: Investment Management y Advisory & Distribution. The firm distributes and manages over $15 billion of institutional and private investors, with a global vision and local presence in 5 countries: Chile, Peru, Colombia, Brazil and the United States, from which it manages a team of more than 80 highly trained professionals, with market insight, independence and commitment to capture and structure the best investment opportunities for its customers. Investment platforms for HMC are Private Capital, Risk Capital, Credit, and Real Assets, in addition to the management of its own funds and third parties for global investors. It is a unique access and advisory platform in Latin America for global managers, delivering structuring, financing and advisory services.