Investment funds play an increasingly important role in financial markets in Latin America and the Caribbean (LAC).
Given the significant shortage of risk capital in LAC, financial institutions are supporting the work of financial intermediaries such as investment funds.
These funds not only invest directly but also attract other stakeholders from the private sector. Their financing enables the development and growth of key industries and companies for economic development and job creation.
Challenges and Opportunities
Latin America and the Caribbean (LAC) are one of the most attractive regions for private capital investment, behind only India and Southeast Asia. The industry has grown over the last decade, reaching US$8.3 billion with 352 transactions.
Accessing financial services in LAC is difficult; interest rates are high, and financing is scarce. Private credit funds are consolidating as an alternative source of financing for small and medium enterprises. These funds enable them to finance themselves in the medium and long term. More and more institutional investors have a growing appetite for these sectors, diversifying their portfolio and relying on new sources of returns.
Our Strategy
We work with fund managers who focus on growth capital, contributing to the development of strategic sectors in Latin America and the Caribbean (LAC). We support both private equity funds and private credit funds that provide capital and promote the expansion and modernization of companies with growth potential, as well as financial institutions and projects that foster development and sustainability in the region.
We seek out managers and teams with successful track records in the origination, management, and implementation of investments. Our clients uphold high social and environmental integrity standards. We also establish strategic partnerships to achieve greater impact in the development of Latin American and Caribbean countries.
Latest projects
Brazil
Regional
Regional
Peru
Regional
Regional
Regional
Brazil
Regional
Regional
Publications
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March 2019Report: Gender Lens Investing: How Finance Can Accelerate Gender Equality in Latin America and the Caribbean
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November 2018Report: Infrastructure Investments and Private Investment Catalyzation: The Case of the Panama Canal Expansion
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September 2018Report: The Economic Impacts of Private Tourism-Related Investments in Jamaica
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February 2019Report: Bright Investments - Measuring the Impact of Transport Infrastructure Using Luminosity Data in Haiti
Andrés is Head in the Financial Institutions Division of IDB Invest. He has been with the IDB Group since 2009, focusing on financial markets and institutions in Latin America and the Caribbean. In his current role, he heads IDB' Invest fund investment activities covering private equity, mezzanine and credit funds. Mr. Ackermann is also member of the advisory committees of several private equity funds in which IDB Invest invested. He holds a Master’s degree in Finance from Boston College and Master’s degree in Economics from Florida International University. He is a CFA charterholder.
• Contact: financialinstitution@iadb.org