Pátria and CAF lauch Investment Credit Fund in Brazil

Pátria Investments, a global alternative asset manager and leader in the Latin American sector announces the launch of its newest Infrastructure Credit Fund, the Pátria Infra Credit FIDC, which has already raised R$ 1 billion with CAF, BNDES (Brazilian Development Bank), IFC (International Finance Corporation, a member of the World Bank Group), and other institutional investors.

Targeted at areas directly impacting energy transition and the country's economic and social development, such as renewable energy, basic sanitation, and urban mobility, the new fund seeks to raise up to R$ 5 billion long-term, mainly from institutional investors. "The investment strategy combines the competencies and experiences of two important areas of Pátria: infrastructure and private credit. The launch of this fund consolidates the manager's position as one of the most important investors in both areas and is aligned with our goal of contributing even more to the country's development," says José Augusto Teixeira, Partner and Head of Business Development at Pátria Investments in Brazil, who also emphasizes that the new fund will boost projects targeted by the Federal Government's Growth Acceleration Program (PAC).

"With the extensive experience we have in investment funds in Latin America, we are confident that this fund, in partnership with BNDES, IFC, and Pátria, will result in significant impacts on the Brazilian economy, with more and better infrastructure, a critical element for economic and social growth," highlighted Jorge Arbache, Vice President of the Private Sector at CAF.

For a manager like Pátria – which operates significantly in long-term investments – the support and partnership of the leading development financial institutions operating in Brazil are critical to make projects like this feasible and sustainable. The institutions supporting the initiative play a decisive role in providing long-term capital for Brazil, especially in the infrastructure sector, always seeking investment in projects that promote innovation, create new jobs, and strengthen the general economy.

"Historically, BNDES has been one of the main providers of resources for infrastructure investment in Brazil, given the importance of this sector for the country's economic development and improvement of the quality of life of Brazilians," says Natália Dias, Director of Capital Markets and Sustainable Finance at the Bank. "In this context, investment in Pátria Infra Credit FIDC has the potential to further expand BNDES's role in financing the sector, especially in supporting small and medium-sized projects that have greater difficulty accessing traditional financing structures and the capital market," adds the director. Natália also evaluates that another differential of the fund and a fundamental factor in BNDESPAR's resource allocation decision was "the priority allocation in PAC target sectors, encouraging the allocation of impact capital and covering companies with lower market visibility."

"The IFC's investment in Pátria's new fund will contribute to increasing access to and improving the quality of infrastructure services through the private sector participation in the capital market; this is essential for economic growth in a context of limited fiscal space for public investments," said Carlos Leiria Pinto, IFC's Country Manager for Brazil.

The fund primarily aims to provide long-term credit for small and medium-sized projects in essential sectors of Brazilian infrastructure, initially in the range of R$50 to R$100 million per project, complementing the role of development banks in the region. "The fund is quite innovative, as it can finance projects through customized structures suitable for the characteristics of each project. This is a strategic step aimed at strengthening investments at the regional level and thus causing a positive impact directly in these communities," concludes Marcelo Souza, Partner and Head of Infra Core, Credit, and Energy Infrastructure Strategies in Brazil.