Description: The investment in Logocenter was made by DGFs partners, as SC-FIEE executives, in 1999. Logocenter is an IT provider specialized in Enterprise Resource Planning (ERP) solutions for mid-sized companies in Latin America. In 2005, the company merged with Microsiga and went public as Totvs, becoming the biggest software producer in Brazil.
Investment Rationale: In 1999 the ERP industry was going through an outstanding growth period. In addition, local companies were seeking for financing alternatives in order to strengthen their competitive position in the global ERP market.
Results: From the time the company received the initial investment until the merger with Microsiga, Logocenter’s revenues grew up four-fold. After the merger and the IPO, the return over the invested capital reached 16-fold, resulting in an IRR of 45% per year.
PELENOVA
Description: Pele Nova is one of the most important biotech companies in Brazil. It developed BIOCURE, a product that induces the development of new blood vessels on the surface over which it is applied, acceleration tissue regeneration and helping in the healing of wounds that would take time to evolute.
Investment Rationale: Unique and patented technology, developed in a leader research institute associated to our national biodiversity roots.
Results: The transition from the pre-operational stage was positive and the company showed significant revenues during its introduction phase. By the second half of ’08, new applications should improve the growth even further.
DH&C
Description: DH&C is a leader provider of IT infra-structure outsourcing solutions to mid-sized and large corporations.
Investment Rationale: The Company, which was seeking for financing alternatives to boost their growth after an important social restructuring, was comparatively more profitable than its competitors in the IT market. Besides, DH&C’s main associate, who’s also a director, has an extensive experience in the IT market, including high-level positions (director and president) in companies such as IBM and Sun Microsystem.
Results: DH&C growth rate over the last few years has been larger than 30%. Its profitability has also been sound when compared to their main competitor in the IT industry. In addition, the company’s market value has also improved since corporate governance policies have been introduced.
DAITAN LABS
Description: Daitan Labs provides R&D related to equipments and software to telephone companies based in US, EU and Asia.
Investment Rationale: Daitan Labs management team has a comprehensive range of expertise in telecom and IT. The company’s CEO, who’s also the founding partner, held the position of Bell Labs Brazil VP, being responsible for all Lucent Technology R&D in the country. Furthermore, the offshoring global market’s been sustaining expressive growth rates, especially as a consequence of India’s presence.
Results: Since the initial investment in ’05, Daitan Labs revenues has shown an increase in excess of 8-fold. The sound growth observed in the offshoring market offers a great perspective for the Company’s growth path.
