It will play an extremely active “hands-on” role in the strategic and financial management of its portfolio companies.
The fund will be a minority investor with a minimum stake of 20 percent in the equity of the companies. It will invest up to 15 percent of its capital in each portfolio company and no more than 40 percent in any given sector.
It may seek to co-invest with other local or strategic investors when the investment needed by the company surpasses the financing it can provide.
It is expected that at least 10 percent of the fund will be invested in companies with main operations outside the greater Buenos Aires area.
The Multilateral Investment Fund is an autonomous fund, administered by the IDB, that provides grants, investments and loans to promote private sector growth, labor force training and small enterprise modernization in Latin America and the Caribbean.
Financing for this operation comes from MIF's Small Enterprise Investment Fund and the Small Enterprise Development Facility.
Inter-American Development Bank
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