(New York Times) RIO DE JANEIRO – Paul Capital, a private equity firm focused on secondary market transactions, has acquired 18.2 percent of a fund managed by the Brazilian technology venture capital firm Ideiasnet, paying 79 million reais ($40 million).
The purchase is Paul Capital’s second in Brazil, according to Duncan Littlejohn, managing director at Paul Capital.
The fund, known as FIP 1, is one of two managed by Ideiasnet, based in Rio de Janeiro. It invests in companies in digital media, e-commerce, mobile and software. Other American partners it has brought on include Liberty Media, which acquired 5 percent of Ideiasnet in 2012.
Ideiasnet is publicly traded, a rarity for a venture capital firm, and it counts the Brazilian billionaire Eike Batista, through his holding company EBX, as one of its largest shareholders.
“Our money is not that significant to them,” Mr. Littlejohn said in an interview with DealBook, adding that “the idea of attracting an institutional investor was attractive to them.”
The Paul Capital deal values the FIP 1 fund at $221 million. Paul Capital has an option to acquire up to 25 percent of the fund.
Sami Haddad, the chief executive of Ideiasnet, said the investment would be used in part to finance a portfolio company, Padtec. It will also go toward starting new growth equity funds focused on technology in Brazil beginning this year.
The deal is expected to close by March 15.