(SIFEM) SIFEM has invested US$10m in Darby Private Debt Fund III (DPDF III), which has a fund target size of US$250m. The main objectives of this fund are to foster economic growth by supporting sustainable job creation and filling the gap for long-term debt finance in Latin America.
DARBY PRIVATE DEBT FUND III (DPDF III) IS A FUND WITH A TARGET SIZE OF USD 250M. THE MAIN OBJECTIVES OF THIS FUND ARE TO FOSTER ECONOMIC GROWTH BY SUPPORTING SUSTAINABLE JOB CREATION AND FILLING THE GAP FOR LONG-TERM DEBT FINANCE IN LATIN AMERICA.
Slower economic growth and widening inequalities in Latin America have resulted in insufficient job opportunities to keep up with a growing labor force, and according to the International Labor Organization (ILO), in 2015 unemployment in the region increased for the first time in five years, causing at least 1.7 million people to become unemployed. By investing in fast-growing companies that increase their labor force DPDF III will help address this job challenge, which is a key priority for SIFEM. Private companies continue to face considerable access to finance barriers, especially for long-term debt finance, which dampens their ability to grow. DPDF III aims to address this problem by providing companies with long-term senior loans.
The Fund will invest USD 15-30m in 8-12 mid-sized companies via 5-7year, senior loans. Though generalist, Darby Private Debt Fund III will focus on the following sectors: infrastructure & logistics-related assets, natural resources & agribusiness, manufacturing, services, healthcare and consumer products.
DPDF III is managed by Darby Overseas Investments, a global emerging markets investment firm headquartered in Washington DC. Darby’s team will be involved in establishing best practice corporate governance standards in the companies to which the fund lends, helping businesses mitigate operational risks and attract further investment to fuel their growth.