Creation Investments Capital Management led a USD20m investment in Chile-based global insurance group AVLA, with participation from DEG and Altra.
(Press Release) AVLA, a global insurance group, and Creation Investments Capital Management, LLC, an alternative asset manager and leading impact investor in developing markets financial services, today announced that Creation will lead a US$20 million investment in AVLA to fund international expansion and strengthen AVLA’s financial position.
Creation Investments, based in Chicago, has portfolio companies in 15 countries including Peru, Mexico and India.
AVLA, based in Santiago, ranks as a top 15 provider of surety and trade credit solutions in Latin America and has a reinsurance panel of over 20 global institutions. AVLA’s affordable housing fintech unit, Creditú, has originated more than US$200 million of housing loans and issued more than US$70 million in securitization bonds.
“We are pleased to add Creation Investments as a shareholder to support our business and international expansion plans. With these resources, we will expand our commitment to our more than 50,000 small- and medium-sized business clients and continue to generate positive social impact in the region,” said Ignacio Alamos, CEO of AVLA.
Creation’s investment further enhances the participation of institutional investors in AVLA, including DEG, a subsidiary of German development bank KfW, and Altra, a private equity firm based in Colombia.
“AVLA has assembled a talented team and an innovative business model that uniquely positions the company for significant growth, profitability and social impact,” commented Bryan Wagner, partner of Creation Investments.
AVLA has recently structured funding facilities of more than US$120 million to finance small- and medium-sized enterprises (SMEs) in Peru and Chile with the participation of major international investors such as the Inter-American Development Bank (IDB), FinDev Canada, and ResponsAbility.
AVLA expects to generate revenue of US$100 million for 2021 across its operations in Chile, Peru, and Mexico.
AVLA is a global insurance group that offers comprehensive insurance solutions across its surety, trade credit, SME credit and mortgage credit products. AVLA currently has operations in Chile, Peru, and Mexico and has supported more than 50,000 small- and medium-sized businesses to date across the region. For more information, visit www.avla.com.
About Creation Investments
Creation Investments Capital Management, LLC, based in Chicago, is an alternative asset manager and leading private capital investor in developing markets financial services. Worldwide, Creation’s investments directly help more than 28 million small businesses. As of June 1, 2021, the firm managed more than US$1 billion in private funds and other vehicles on behalf of individuals, family offices and institutional investors. Leveraging its deep industry experience, Creation partners with management teams to inject growth equity and facilitate buyout transactions in firms specializing in microfinance, small- and medium-enterprise credit, leasing, factoring, insurance, savings, payments, and mobile money. For more information, visit www.creationinvestments.com.