Canada based Alberta Investment Management Corporation and Brazil based IG4 Capital are set to invest R$ 400 Million ($107 million) in Brazil based Iguá Saneamento S.A. The transaction which is expected to close within 50 days is subject to customary closing conditions and the investment will ensure to explore new opportunities in the Brazilian water and sewage sector.
IG4 Capital established FIP Iguá to manage Iguá Saneamento S.A., formerly known as CAB Ambiental and IG4 Capital will continue to be the controlling shareholder of FIP Iguá.
A water and sewage service holding company, Iguá Saneamento is in operations in 18 locations in five Brazilian States which includes public concessions and public- private partnerships providing sanitation services for approximately 6.6 million Brazilians. Iguá Saneamento’s 84.2% stake is owned by FIP Iguá and the remaining 15.8% is owned by BNDES Participações S.A.
Iguá Saneamento had recorded a profit of R$30.2 million in 2017 while it netted a loss of R$83.8 million in the year before. IG4 Capital control over Iguá Saneamento has therefore seen as a positive for Iguá Saneamento.
According to David Perl, Director, Infrastructure & Timber, AIMCo.:
“We are pleased to announce this partnership with IG4 Capital and Iguá Saneamento S.A. The Brazilian water and sanitation sector requires significant private investment in order to increase the percentage of the population that has access to potable water and sewage collection & treatment. Our involvement in Iguá Saneamento will accelerate the company’s growth and its development into a leading Brazilian water platform.”
Paulo Mattos, IG4 Capital’s CEO said the following:
“We are pleased with the partnership with AIMCo. It represents an additional proof that Iguá Saneamento is already in the path to grow, after just one year that we initiated a complex turnaround in the company. With the new resources, we will be able to create even more value to IGUÁ’s stakeholders.”
About Alberta Investment Management Corporation (AIMCo)
Founded in 2007, Alberta Investment Management Corporation (AIMCo) is a crown corporation of the Province of Alberta and is one of Canada’s largest and most diversified institutional investment managers. AIMCo invests in the public equity, fixed income, private equity, real estate, and alternative investment markets across the globe and it also manages portfolios for its clients.
About IG4 Capital
Headquartered in Brazil, IG4 Capital operates as a private equity investment company and it invests in distressed securities and assets. IG4 Capital is primarily focused on private equity and private credit.