May 7, 2014

The Fundo de Investimento em Participações (FIP) Aeroespacial, the first of its kind in Latin America focusing on this sector, is being launched today, Wednesday, May 7, at the headquarters of the Brazilian Development Bank (BNDES), in Rio de Janeiro.

The fund is the result of a joint initiative of the BNDES with FINEP, the Paulista Development Agency (Agência de Desenvolvimento Paulista – Desenvolve SP), and Embraer. It was created for the purpose of strengthening the productive chain for aerospace, aeronautics, and defense and security and to promote the integration of systems related to these sectors via support for small and medium companies.

The initial assets of the fund will come to R$ 131.3 million, distribute, as follows, among the quotaholders: BNDESPAR, Embraer, and FINEP, each with R$ 40 million; Desenvolve SP, with R$ 10 million, and R$ 1.3 million brought in by PORTBANK, which will manage the fund.

FIP was structured with elements of Corporate Venturing that is based on the corporate efforts of a company that is strategic to the sector, as is the case with Embraer, whose objective is to contribute to structuring and strengthening the productive chain related to its activities in the aeronautics, aerospace, defense and security, and systems integration sectors. Furthermore, the fund creates a permanent channel that makes it possible to have closer contact between the strategic company of the sector and the most innovative enterprising initiatives of these sectors and to promote investments in strategic sectors for Brazil, via the Corporate Venturing concept.

“We are very happy to see this initiative become a reality. The support for micro and small technology-based companies, with the backing of large companies from related sectors, is right in line with the role of the BNDES. We expect and work toward other companies to follow the path marked out by Embraer,” said the President of the BNDES, Luciano Coutinho.

“Risk capital is an efficient tool for financing projects. That is mainly because it creates a constant investment environment. The involvement of industry icons is important, in order to reduce risks and motivate companies and individual investors to put their money into technology-based companies,” stated Glauco Arbix, President of FINEP, whose goal is to reproduce the initiative for such supply chains as oil and gas, with Petrobras, and information technology, with an important company from the sector.

“Investing in research and in innovative companies is the solution for ensuring the sustainable growth of the economy. Putting our money on innovation is in the DNA of Desenvolve SP,” says Milton Luiz de Melo Santos, CEO of Desenvolve SP. Besides the Inovação Paulista, launched by Desenvolve SP, and Aeroespacial, the institution also has investments in another three venture capital companies.

“Embraer has always given incentive to the development of a national chain for aerospace and defense industry in Brazil, and is especially interested in the high-technology segment,” states Frederico Fleury Curado, Embraer CEO.

The Fundo, which is typically venture capital, will focus on small and medium innovative companies (with gross revenues of up to R$ 200 million/year) anywhere in Brazil.

The management of the fund is in the hands of PORTBANK, which was selected through a joint public notice held in September of last year. At its headquarters in São Paulo, the company has experienced professionals in the target areas and has accumulated over 25 years of experience in merger and acquisition operations totaling more than 40 operations coming to over R$ 20 billion. Interested companies should contact the Fund managers via www.portbank.com.br.