Patria Investments, the Latin American alternative asset manager, has launched an infrastructure private credit fund that will support economic and social development in Brazil.
The fund has already raised R$1bn (£159m) from BNDES (the Brazilian Development Bank), CAF (Development Bank of Latin America and the Caribbean), IFC (International Finance Corporation, a member of the World Bank Group), and other institutions.
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The fund is focused on areas that directly impact the energy transition as well as Brazil’s economic and social development, such as renewable energy, basic sanitation and urban mobility.
It is looking to raise R$5bn in the long term, mainly from institutional investors.
“The investment strategy combines the skills and expertise of two important areas within Patria – infrastructure and private credit,” said José Augusto Teixeira, partner and commercial head of Patria in Brazil.
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“The launch of this fund consolidates our position as one of the most important investors in both areas and is aligned with our goal to continuously contribute to the development of the country.”
The new fund primarily seeks to provide long-term credit for small and medium-sized projects under development in essential sectors of Brazilian infrastructure, initially in the range of R$50 to R100m per project.
“The fund is quite innovative, given that it will be able to finance projects through customized structures, appropriate to the characteristics of each project,” said Marcelo Souza, partner and head of infra core, infra credit and energy infrastructure strategies at Patria in Brazil.
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“This is a strategic step that aims to strengthen investments at the regional level and thus have a positive impact directly on these communities. Projects within the sectors of focus, such as energy, transport and sanitation, are extremely important for the development of the country as they contribute to the energy transition and help solve structural bottlenecks that improve the efficiency of the economy and people’s quality of life.”
Patria has $31.8bn (£25bn) of assets under management across private equity, infrastructure, credit, public equities and real estate strategies.
