May 15, 2012

The BNDES is receiving proposals in answer to the public call-for-managers (two) of Share Investment Funds for companies with annual net revenue up to R$ 150 million, focused on innovation. The BNDES’ participation may reach up to 35% of the committed capital in each fund.

Two venture capital funds will be selected; one focused on the Information and Communication Technology (ICT) sector, and the other of a transversal nature or focused on a specific sector. In both cases, the sectors must be engines for innovation. In the transversal fund public call, a fund focused solely on ICT cannot be selected, as there will already be a selection for a specific fund for this sector.

Managers may not participate in the selection process of the two funds, and they should, therefore, indicate their choice in the consultation letter to the BNDES. Proposals must be submitted both in print and electronically by June 22.

Portfolio – The Bank expects to invest R$ 1 billion in funds up to 2014, leveraging total investment of up to R$ 4 billion. Currently, BNDESPAR has a portfolio of 29 active funds - 14 for venture capital and 15 for private equity -, which totals a committed equity of R$ 8.67 billion, from which R$ 1.93 billion was committed by BNDESPAR, thus showing the multiplying effect of its efforts.

A third of the active funds is focused on innovation and comprises nearly half of the companies’ approved from the portfolio. Also in the innovation schedule, the Bank fosters seed capital, through the Criatec Fund, with approved investments in more than 36 companies. Another relevant part of the funds is aimed at strategic sectors such as Infrastructure, Environment and Agribusiness, as well as funds with regional operations.

The BNDES System has actively taken part in conceiving funds, in choosing managers and in fundraising with other institutional investors. It has also enthusiastically participated in investment committees, in decisions on investments in more than 200 companies and projects, and, later, in monitoring and divesting these companies’ shares.

Details on the selection process of the public call can be found here.