Cayman Islands based Equity Partners Fund SPC has established a new segregated portfolio which will conduct business under the name Funchal Equity Partners Fund to make investments into Brazil.

Banif Banco de Investimento (Brazil) S.A. has been engaged to conduct valuations of potential transactions and to assist in the hiring of companies that can conduct due diligence should it be required.

Funchal Equity Partners Fund generally looks to invest amounts from $50 million up to $500 million in Brazilian listed companies with consistent trading volumes for a variety of activities including working capital, acquisitions and other growth opportunities.

Alex Chaia, Fund spokesperson said the fund focuses on equity investments in public companies as well as private companies that will be listed on a securities exchange within six months of a funding commitment.

Unlike hedge funds which have significant regulatory burdens exposing their investors to higher risks, Funchal Partners Fund is able to act quickly, is more flexible when it comes to structuring an investment and has less regulatory burdens, Mr. Chaia said.

According to Chaia, the fund has no outside investors and is considered a private fund run by its principals, similar to a merchant bank that invests its own capital and as such it is seeking capital appreciation through the identification and funding of liquid growth companies.

The fund will approach various companies such as manufacturing, construction, professional services, healthcare and finance who are all looking for growth or acquisition funding which is difficult to find given current global economic conditions, Chaia said.

The fund’s investment guidelines, apart from a company’s size and liquidity, require them to have exceptional management and long-term sustainable growth opportunities with the potential to achieve significant milestones over a developmental period, noted Chaia.

Chaia reiterated that while applicants should expect to be able to meet the company’s due diligence requirements, the funding arrangements are much simpler than many other avenues such as rights issues and other underwritten issues.

Ultimately once a company satisfies the fund’s requirements, the company will send proposed investment terms and explain the steps required for the company to ultimately obtain the requested funding, he added.

Equity Partners Fund SPC provides fast, efficient and inexpensive access to equity capital. The company has commitments for funding on many exchanges including Frankfurt, Johannesburg and Sydney.