(Rio Bravo) November 2010 – Rio Bravo Investimentos, a Brazilian private equity and venture capital firm, announced the closing of a first round of investment for an energy fund at R$300M (approximately US$174.6M). The fund will focus on Brazilian energy generation projects, including hydroelectric, thermal and wind power plants and biomass energy production.
The fund is expected to reach a final closing of R$600M after two additional investment rounds.
The majority of the first round financing came from Brazilian pension funds. However, the fund’s Investment Committee is composed entirely of members appointed by Rio Bravo, which will fully manage the fund. Other shareholders, including the pension funds, will participate in the Compliance Committee, which is responsible for the monitoring of operations. This structure is innovative for the Brazilian market, where representatives from the pension funds have traditionally taken an active role on the investment committee.
“This fund is aligned with international private equity standards, which we hope will help to raise capital from foreign investors in our second fundraising round,” Paulo Silvestri, Private Equity Director at Rio Bravo.
The fund was created from a movement of the pension funds sponsored by companies in the energy sector. The idea began in 2008 when Fundacao Itaipu director Silvio Rangel, along with Luiz da Penha of Fachesf, started a national selection process to find a fund manager for an energy-focused fund. In December 2009, Rio Bravo was selected as the fund manager and administer, among over 40 other firms.
The first round of capital came from 22 shareholders, including Rio Bravo, which committed R$3.5M.
For more information, visit www.riobravo.com.br