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Company name

Stratus Capital Partners III (the “Fund” or “SCP III”)

Project number

12221-01

FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.

E&S category
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FI-2

Country

Brazil

Sector

Financial Institutions

Status

In implementation

Disclosed date

05/18/2018

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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07/24/2018

Approval date

08/01/2018

Signed date

01/17/2019

Sponsoring entity

N/A

Investment Operations Department Contact

N/A

Investment type

Syndicated amount

N/A

Financing amount

USD $ 10,000,000

Currency

USD

Project scope and objective

The Project consists of an Equity Investment up to US$10 million as a limited partner in Stratus Capital Partners III. The Fund is the third fund with a middle-market strategy managed by Stratus Corporation through its Brazilian subsidiary Stratus Gestão de Carteiras Ltda. (the “Fund Manager” or “Stratus”), to invest in companies already operating in Brazil or with business plans to expand its operations to Brazil. The IDB Invest’s participation is expected to play a key role in attracting additional international investors and sending a strong signal from an institution with significant exposure and experience in the region and will allow the Fund to reach the necessary scale to effectively execute its investment strategy and reach its size of US$200 million. SCP III is a multi-sector fund that will invest capital in middle market companies with business plans combining both organic growth and add-on acquisitions. The Fund will diversify its portfolio of investments in sectors such as: (a) healthcare services; (b) education; (c) processed food; (d) logistics; (e) specialty services; (f) business services; (g) consumer services; (h) marketing and commerce distribution (retail and/or wholesale, etc.).

The IDB Invest’s involvement is instrumental for the coexistence of local players in a highly dynamic market with very well-known international players. Furthermore, the IDB Invest’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 an effort to identify investments in regions and cities outside Brazil’s metropolitan areas, as well as to engage businesses that may encompass a regional perspective and/or a broad international expansion.

Furthermore, IDB Invest’s investment will increase availability of private equity for growth-oriented, mid-market companies in Brazil, contributing to increased competitiveness and economic growth in the country. Such availability will come to add a better balance in today’s market inefficiency, helping to remove restrictions from the country / regional entrepreneurial ecosystem. The Fund will acquire equity positions with defined exit strategies, with investment tickets between US$10 million and US$50 million in companies that are generating revenues in the range of US$30 million to US$200 million.

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW

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Contact information

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Request information

Alternatively, you may also use the following contact information :

Client Contact

EMAIL

N/A

PHONE NUMBER

N/A

POST OFFICE ADDRESS

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

For inquiries, comments and information requests about the project

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Learn more about how we provide private-sector solutions in the region .