IFC and Jive Partner to Support the Expansion of Credit Access for Small and Medium Enterprises in Brazil

IFC, a member of the World Bank Group, is partnering with Jive Investments to support the development of the distressed small and medium enterprises (SME) assets market in Brazil. Distressed assets are non-productive assets, including non-performing loans, distressed real estate and legal claims.

IFC is providing $80 million to a co-investment vehicle jointly set up with Jive Distressed Fund III, which will contribute with $240 million. Jive is a servicer and manager that focuses on originating, structuring and servicing distressed assets in Brazil. By acquiring distressed assets, the combined capital of IFC and private investors will provide financial institutions with the liquidity needed to break the vicious cycle through which an economic slowdown and increasing distressed assets discourage new lending. In addition, the invested capital will provide liquidity directly to businesses in financial distress, such as SMEs, by advancing cash flows to them via the acquisition of legal claims and distressed real estate assets.