Brazil has an important space in the private equity market to be fulfilled by investors in countercyclical moments of the economy and/or in specific industries in crisis. IG4 Capital seeks superior returns primarily through creative capital restructurings, conversions of debt into equity, partnering with banks and improving business operations.
While the Brazilian secondary credit market is still in its infancy stage, there are some interesting opportunities in high yield corporate debt, non-performing loans and over levered distressed assets, including real estate. IG4 Capital targets opportunities in which banks and other creditors seek an investor with a strategy to recover all or part of their debt.
B Lab® certifies IG4 Capital as a B-Corporation®
Certification is issued to companies which combine management excellency with social and human development skills
IG4 Capital was certified by B Lab® in the end of last year as a B-Corporation®, becoming therefore the first CVM registered private equity company in Brazil to possess such certification, issued pursuant to a rigorous evaluation process which takes into consideration over 180 different factors. The certification is targeted at companies which are able to demonstrate that they combine management excellency of their business with social and human development skills. B-Corp™ certifications are issued to companies that voluntarily adhere to transparency, social responsibility and development regulations.
Currently, B-Corps form a global movement of around 2 thousand corporations, in over 25 different countries. In Brazil, approximately 70 companies, including Natura for example have joined the B-Corps. With respect to IG4 Capital, one of the aspects taken into account by B Lab® was the first investment made by the company: former Cab Ambiental, renamed to Iguá Saneamento S.A. Such water and sanitation company, which possesses 18 concessions throughout several Brazilian states, had its bankruptcy avoided as a result of a creative investment solution developed by IG4 Capital. Consequently, 1.5 thousand direct and over 1 thousand indirect jobs were kept and the water and sanitation services to over 6 million people was maintained.
Iguá Saneamento Acquisition
In July of 2017, IG4 Capital closed its first transaction, the acquisition of Iguá Saneamento, formerly CAB Ambiental. The deal includes the creation of a R$410 million deal specific fund (FIP IGUA – IG4 Capital Special Situations I), in a partnership with leading Brazilian banks and capital from other financial investors.
Special situations fund fundraising
IG4 Capital is currently fundraising for its second special situations fund (IG4 Capital Special Situations II), a US$400 million fund, targeting institutional offshore investors, pension funds, sovereign funds and developmental financial institutions.