The Alberta Investment Management Corp. is investing $140 million in Brazilian private equity firm IG4 Capital’s FIP Iguá, the controlling shareholder of water and sewage holding company Iguá Saneamento.
Following the investment, IG4 Capital will remain the controlling shareholder of FIP Iguá, which holds an 84.2 per cent stake in Iguá Saneamento.
“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 and treatment,” said David Perl, director of infrastructure and timber at AIMCo, in a news release. “Our involvement in Iguá Saneamento will accelerate the company’s growth and its development into a leading Brazilian water platform.”
Iguá Saneamento, which serves about 6.6 million people, recorded a profit of about $10.5 million in 2017, up from a net loss of about $29.3 million the year before. This represented an improvement of 136 per cent in what was deemed a restructuring year for the company.
“We are pleased with the partnership with AIMCo,” said Paulo Mattos, chief executive officer of IG4 Capital. “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.”