the investment fund Lightrock Growth Equity Fund II Brasil FIP Multiestratégia (LGEF II) is the first contracted by the National Bank for Economic and Social Development (BNDES) after the Public Call for the Selection of Impact Investment Funds.
Selected in the Free Impact Equity Investment Funds (FIP) modality, it will receive a contribution from the BNDES of up to R$250 million through the subscription of quotas in the fund, which represents up to 25% of its target equity: R$1 billion.
According to information from the bank, through its press office, the difference will be captured in the market. “The objective is to invest in companies that offer innovative products and services and generate positive socio-environmental impacts”, he explained.
The fund will invest in companies that have already proven their business model, are in the growth phase, are scalable and need capital to sustain growth and deliver the financial and impact return they propose.
Seven key sectors will be prioritized: health, education, renewable energy, agriculture and sustainable food, mobility and efficient transport, financial system transformation and digital infrastructure. The fund’s investment period will be four years, with a total term of eight years.
Impact investing
The director of Participations, Capital Markets and Indirect Credit at BNDES, Bruno Laskowsky, pointed out that it is a pioneering initiative by the institution to support impact investments through an equity fund.
“BNDESPAR’s support for this fund is aligned with two verticals of the National Strategy for Investments and Impact Businesses (Enimpacto): expansion of the offer of capital and increase in the number of impact businesses”, he explained.
The person responsible for LGEF II, Lightrock Gestora de Recursos Ltda, will use its own impact methodology, inspected by an independent audit, to periodically measure the impacts of each business, not only before, but during the investment by the fund, which will take into account environmental aspects. , social and governance.
“Lightrock seeks to invest in companies that bring solutions to the great structural challenges faced by our societies, both in the social and environmental aspects. We have increasingly directed resources to the local market and, in this sense, we are honored to welcome the BNDES as an investor in our new fund”, said Marcos Wilson Pereira, partner and leader for Latin America at the manager.
Modalities
Launched in July 2021, the call includes two types of funds, according to the size of the investees: FIP Impacto MPME and FIP Impacto Livre. In the FIP Impacto MSME modality, companies must have revenues of up to R$ 90 million. In the FIP Impacto Livre modality, there is no maximum billing limit.
In the FIP Impacto MSME modality, each fund must aim to raise at least R$ 200 million. In the FIP Impacto Livre modality, the fund must have a minimum committed capital of R$ 400 million. In the case of LGEF II, the capital can reach R$ 1 billion. The maximum percentage of BNDES participation in the committed capital of each fund selected by the call is up to 25%.
With this Chamada de Impacto initiative, the bank will invest up to R$ 450 million, in order to stimulate businesses that support the transformation of society and the improvement of the lives of Brazilians in various aspects, such as waste management, housing, digital accessibility, environment, transport, water resources, basic sanitation and education. The action is in line with the BNDES’ 2020-2022 Triennial Plan, reinforced the institution. As part of the Impact Call, two other funds will be contracted that are in the due diligence phase.
