Equity

Equity can also be leveraged, allowing companies to raise additional debt funding. By providing long-term risk capital, offering managerial support, and introducing best practices, Evolutia Capital helps Brazilian companies to grow faster and become more productive, innovative and competitive.

Higher productivity at the company level translates into new or better employment and competitiveness for the economy, potentially through demonstration effects and reduced cost of inputs. Given the potential to boost development outcomes and make these investments more sustainable, other financial institutions can be attracted to play an active role in the equity market.

Ownership in a company, even a minority stake, amounts to a seat at the table. Through an equity investment, a player like Evolutia Capital can contribute technical and market expertise, improve financial management, strengthen environmental, social and governance standards and crowd in additional investors.

Evolutia Capital’s responsibilities to our own shareholders require us to be prudent and selective in deploying equity resources. Projects must be in line with Evolutia Capital’s strategic priorities and risk tolerance and have a reasonable potential to generate good returns. We also need to ensure that our involvement would add value to the company in question and that the investment would enhance sustainable development.

Key objectives

Here are some of Evolutia Capital’s key objectives in considering equity investments:

To provide growth capital to financial partners institutions that serve any size of enterprises; social and accessible infrastructure; expansion-driven corporates; and funds focused on reaching any countries.

To serve as an anchor investor in infrastructure projects (such as public-private partnerships, clean energy, transport, or social infrastructure), providing equity to complement debt financing.

To support early-stage projects that have the potential for rapid growth but have a hard time finding capital, such as those involving new platforms for financial technologies (fintech).