IDB Invest, a member of the IDB Group, invested $50 million in the Fintech Credit Fund of Victory Park Capital Advisors, LLC, which will provide structured loans to technology-based non-bank financial institutions (Fintech) in Latin America and the Caribbean.
The deal will support one of the main alternative investment companies worldwide to expand its operations in the region and promote the development of a new asset class that is currently not available in the market. The financing has a tenor of eight years.
An alternative source of financing also will be introduced to help close the current financial gap for Fintech companies in the region, which cannot access traditional sources of capital.
Additionally, IDB Invest will support Victory Park Capital in the application of a Gender Gap Analysis Tool, which assesses the performance of gender equality in the workplace, the market, and the community. Possible gender policies and practices will be identified to promote equality at Victory Park Capital and its portfolio of Fintech companies.
IDB Invest supports entities such as Fintech companies, which can efficiently deploy working capital and medium-term financing for the private sector. Fintech companies could play a big role in the economy given the reaction of the credit markets to the COVID-19 pandemic.
This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), and Industry, Innovation and Infrastructure (SDG 9).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $12.1 billion in assets under management and 344 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
About Victory Park Capital
Victory Park Capital Advisors, LLC (VPC), is a world-leading alternative investment manager that invests in established and emerging businesses in various industries, often unable to access traditional sources of capital in the United States and other countries. As an established private credit manager, VPC has committed and invested approximately $9 billion in more than 100 investments. The company's differentiated offerings span an extensive network of industry relationships, disciplined deal origination, creative financing capabilities, extensive credit structuring, and expertise in special situations. VPC was founded in 2007 and is based in Chicago with additional offices in New York, Los Angeles, and San Francisco. It is a privately owned and registered investment adviser with the SEC.