RIO DE JANEIRO, Brazil, Feb. 21 Aug. 2022 (GLOBE NEWSWIRE) — Vinci Partners Investments Ltd. (NASDAQ:VINP) (“Vinci Partners”, “we”, “us” or “our”), the controlling company of a leading alternative investment platform in Brazil, today announced that “Vinci Impacto e Retorno IV”, or “VIR IV” (“the Fund”), the Impact family of funds managed by the Private Equity strategy of Vinci Partners, has reached an agreement to invest an investment round of R$100 million for the acquisition of a minority stake in DM Card (“DM” or “the Company”), a fintech focused on lending to low-income populations and one of the leading issuers of Private Label cards to retailers in Brazil.
VIR IV has a unique strategy in Brazil, with a dual mandate to generate favorable market returns as well as impact, through the acquisition of minority stakes in small and medium-sized Brazilian companies, which present growth potential and clear and measurable environmental, social and social measures. governance or ESG objectives. This transaction marks VIR IV’s fifth investment, resulting in a gross allocation of 43.7% of the Fund’s billion reais in total capital commitments.
DM Card was founded in 2002, focusing on Private Label Credit Cards. Today, the company holds an extensive geographical footprint, being present in 14 states in Brazil and partnerships with more than 1,100 small and medium retailers in +2,300 stores across the country.
From the investment contribution of VIR IV, we hope to support DM Card to amplify its impact and become the financial services company of choice for the low-income classes, being a benchmark in credit and productive microcredit for entrepreneurs, offering simple, adapted and accessible solutions, promoting customer diversity, providing financial education and contributing to economic development.
José Pano, Partner and Head of VIR Strategy for Vinci Partners, said: “We are delighted to partner with DM, a company with extensive expertise in credit for low-income clients which translates into a proven business model. and profitable and predictable expansion. . We believe there is an opportunity for the Company to develop new products and channels as well as become a digital-focused, omnichannel provider with a customer relationship-centric model. VIR’s investment creates positive impact aligned with the Fund’s impact strategy, such as promoting financial inclusion for low-income people and developing specific credit programs aimed at education, renovation home and health.
About Vinci Partners Private Equity
Vinci Partners’ Private Equity strategy has an industry-neutral approach focused on growth equity investments in Brazil. The main strategic axis is the creation of value by driving the growth of revenues, productivity and profitability through significant operational and management changes in portfolio companies. The private equity strategy invests through two sub-strategies: Vinci Capital Partners, which focuses on control and co-control investments, and Vinci Impact and Return, which focuses on minority investments in small and medium-sized companies. companies with a dual ESG impact generation mandate. as well as market returns.
About Vinci Partners
Vinci Partners is a leading alternative investment platform in Brazil, established in 2009. Vinci Partners’ business segments include private equity, public equity, real estate, credit, infrastructure, hedge funds and investment products and solutions, each managed by dedicated investment teams with an independent investment committee and decision-making process. We also have a financial advisory business, focusing primarily on pre-initial public offerings, or pre-IPOs, and mergers and acquisitions, or M&A, advisory services for Brazilian middle-market companies.
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