(Press Release) Bamboo Finance, a global private equity group specializing in investing in business models that benefit low-income communities in emerging markets, announced today a US$2m investment in Brazil Plus. Brazil Plus, founded in 2008, invests in the Brazilian economy by financing the receivables of small and medium companies, providing working capital so that these companies can grow, generate jobs, and be sustainable.
Brazil Plus advances financial inclusion for small and medium-sized companies in Brazil by providing them tailor-made and just-in-time financing.
Access to finance remains a key constraint to the growth of small and medium-sized business (SME) in emerging markets, a key engine of job growth. Low economic growth combined with controlled but high inflation and interest rates increases in Brazil have further contributed to the lack of adequate financing partners for SMEs.
Brazil Plus addresses this critical gap by providing tailor-made financing services through partnerships with Brazilian commercial finance companies that deliver efficient and cost effective financing services to thousands of SMEs in Brazil to manage their working capital cash flow needs.
“Bamboo Finance, as a pioneer in financial inclusion, believes that Brazil Plus represents a unique investment opportunity to invest in a diversified portfolio spanning a very broad reach of the industrial, commercial, and service segments of the Brazil economy, combined with an innovative risk-management model run by an experienced team.”, said Bernhard Eikenberg, Investment Director, Latin America of Bamboo Finance.
“Brazil Plus will not only create greater access to financing for SMEs, who are critical to economic development, job growth and poverty alleviation, but will also promote better governance and business practices by increasing accountability, improving credit-risk management, and contributing to creating greater credit availability for SME’s.”, says Ana Maria Aristizábal, Investment Manager of Bamboo Finance.
Brazil Plus’ vision is to help in the growth of the Brazilian economy by providing investment opportunities with differentiated returns, focused on the development and growth of the market of Brazilian credit for small and medium-sized companies, by bringing new types of investors, new funding structures and a focus on preservation of capital and real economy cash returns uncorrelated with financial market returns. “Bamboo Finance is a great partner, as we share the same goal of growth at a responsible rate, transparency, risk management and advancing financial inclusion in Brazil,” says Tom Cauchois, CEO, of Brazil Plus.