News

IDB Invest has approved an additional investment of up to $50 million in Victory Park Capital (VPC) Investor Fund W, L.P. (the “Fund”), a dedicated debt fund in Latin America and the Caribbean (LAC) committed to offering customized financial solutions for fast growing technology-driven financial institutions, or Fintechs. The Fund was initially established in 2019 by IDB Invest and the International Finance Corporation (IFC) with a $100 million commitment. This additional $50 million investment further strengthens VPC’s commitment to fostering growth and innovation of the fintech ecosystem across the LAC, a market often underserved by local financial markets.

“We are excited to deepen our support for the fintech ecosystem in Latin America and the Caribbean,” said Diego Flaiban, Division Chief and Managing Director for the Financial Sector at IDB Invest. “This investment strengthens our strategic relationship with VPC and reinforces our commitment to expanding access to financing for fast-growing Fintechs, especially those serving MSMEs, and helps accelerate the development of fintech credit as an emerging asset class in the region.”

Fintechs are essential to advancing financial inclusion in LAC, particularly for underserved individuals and micro, small, and medium-sized enterprises (MSMEs) by offering swift, efficient credit access through alternative data processing technology. However, middle-market Fintechs in the region face a significant funding gap, unlike early-stage startups or mature financial institutions. A preference for established industries, and risk-averse financial institutions exacerbate this issue, hindering growth. A recent IDB report highlights that scaling and funding remain the primary challenges for these Fintechs, with 56% struggling to expand their business and 16% citing access to funding as their biggest hurdle. Bridging this funding gap requires a multi-stakeholder approach, including policy support from governments, ecosystem development, and local investor engagement to attract capital and encourage growth across the Fintech sector.

The Fund will focus on expanding access to financing for fast growing Fintechs that target the MSMEs segment, and advancing fintech credit as an emerging asset class within the private credit market to strengthen and accelerate the growth of the LAC Fintech ecosystem.

“VPC has been a proud partner of IDB Invest for several years and we are grateful to be continuing our work together,” said Gordon Watson, partner at VPC. “We are passionate about enabling access to financing for communities whose needs have historically been unmet, and we look forward to supporting the continued development and growth of Fintechs that are bringing crucial products to MSMEs in Latin America and the Caribbean.”

In addition to the financing, VPC has signed an agreement with IDB Invest for advisory services including the provision of a Gender, Diversity and Inclusion (GDI) engagement in the form of a “train the trainer” program. This program will enable VPC to replicate the Women’s Empowerment Principles Gender Gap Analysis Tool among Fintechs in its portfolio to improve GDI practices, policies, strategies and products.

IDB Invest and VPC’s initiative will contribute to the following United Nations Sustainable Development Goals (SDGs): Gender equality (SDG 5), Decent work and economic growth (SDG 8) and Industry, innovation, and infrastructure (SDG 9).

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website ww.idbinvest.org/en.

About Victory Park Capital

Victory Park Capital Advisors, LLC (“VPC” or the “Firm”) is a global alternative asset manager that specializes in private asset-backed credit. In addition, the Firm offers comprehensive structured financing and capital markets solutions through its affiliate platform, Triumph Capital Markets. The Firm was founded in 2007 and is headquartered in Chicago. In 2024, VPC became a majority-owned affiliate of Janus Henderson Group. The Firm leverages the broader resources of Janus Henderson’s 2,000+ employees across offices in 24 cities worldwide. VPC is a Registered Investment Advisor with the SEC. For more information, please visit www.victoryparkcapital.com.