The Inter-American Development Bank's Multilateral Investment Fund announced the approval of a $5 million financing for an equity investment fund in Argentina and a $100,000 technical assistance grant to support development of the venture capital industry.
“The MIF investment and technical assistance will help TGLT Consultores Ventures, founded in 2004, to build one of Argentina's first venture capital funds,” according to project team leader Susana García-Robles. “This will serve to move forward other initiatives in favor of the industry.”
“The fund will include among its investors the MIF, the principals of the fund, 3-4 Argentine high net-worth individuals and 3-4 international investors,” García-Robles added. “The maximum capitalization expected for the fund is $30 million, with a MIF participation of $5 million.”
TGLT plans to invest in 8 to 10 companies with growth potential that have difficulties in acquiring long-term financing. It will also help these companies to improve their governance and operating standards.
The Inter-American Development Bank (IDB) announced that the fund plans to invest in any sector where it finds companies with high growth potential.
“Given the fund manager and the advisory board member's skills, the main sectors targeted are agribusiness, technology and service (retail, financial, logistics). The fund will invest between $500,000 and $3 millionin each of the companies,” said García-Robles.
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