ImpactAlpha, March 17 — International Finance Corp., the private investment arm of the World Bank Group, is investing $20 million in the Rio-based private equity firm’s Vinci Impact and Return IV fund.
Vinci aims to finance small and mid-sized businesses serving low-income Brazilians in healthcare, education and nutrition. At least 35% of the fund will be invested in the country’s underserved northern region.
International Finance Corp.’s Carlos Leiria Pinto says the IFC is keen “to play an important countercyclical role in Brazil during a period of crisis.” This is the IFC’s second investment in Vinci Capital Partners.
An IFC analysis of its equity investments since 1961 suggests the portfolio outperformed the S&P 500 index over the same period by 15%.
The IFC’s Hans Peter Lankes says the IFC’s mandate for impact helped it “find equity opportunities that other investors missed, by investing in markets that lacked access to capital.”