Company name
Valor Opportunity Fund II, L.P
Project number
13818-01
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
FI-2
Country
Regional
Sector
N/A
Status
In implementation
Disclosed date
03/15/2022
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
06/07/2022
Approval date
06/07/2022
Signed date
07/29/2022
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 of $10 million in the Valor Opportunity Fund II LP (“VOFII” or “Fund”), which aims to provide early growth equity for technology-enabled companies in Latin America and the Caribbean (“LAC”) with Brazil being its main geographical target. VOFII will be managed by Valor Capital Group (“Valor” or the “Fund Manager”). Established in 2011, Valor is one of the most active venture capital (“VC”) investment firms in LAC with an exceptional track record. Valor is currently fundraising $500 million for two funds (including VOFII) and has successfully raised and invested five other funds with total AUM worth US$2.2 billion.
With a target size of US$250 million, VOFII will invest in approximately 10-15 “early growth” venture‑backed companies (Series B+) across LAC in sectors such as financial services, education, mobility, logistics, consumer & retail and health.
The Fund will invest in breakout companies, which are expanding and require larger amounts of capital than the amount available from Valor’s early-stage funds, allocating at least 50% of the Fund to such investments. VOFII may also invest in businesses that are not in the portfolios of Valor funds.
The Fund will provide capital for young, innovative and fast-growing firms across the region. Contributing to job creation, higher productivity, and ultimately, economic growth. The Project is also expected to facilitate cross-border technology transfers and will thus contribute to the further development of the regional innovation ecosystem.
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Contact information
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Client Contact
N/A
PHONE NUMBER
N/A
POST OFFICE ADDRESS
N/A
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
For inquiries, comments and information requests about the project
Request informationLearn more about how we provide private-sector solutions in the region .
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.
VOFII - 13818-01 - ESRS
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