Darby International Capital Exits VREC Investment
São Paulo, Brazil and Washington, DC, January 9, 2023 – Darby International Capital LLC ("Darby International") announced that Darby Latin American Mezzanine Fund II, L.P. ("DLAMF II") has completed a successful exit of its investment in Vital Renewable Energy Company ("VREC"), a sugar and ethanol producer with operations in Brazil.
VREC was formed in 2008 as a partnership between a local management team and international private equity funds with the purpose to develop sugar and ethanol assets in Brazil. VREC (through its subsidiary, BSA) acquired one operating mill in 2010 in the State of Goiás and since started the expansion of the asset. Darby International investment in 2013 was critical to finance (i) its proprietary sugarcane program, securing feedstock for the mill and (ii) the industrial capex required to support the growth of its crushing capacity. As a result, the company became an attractive asset in the sector, resulting in a two-stage sale (2017 – 2020) to a large agricultural player and sugarcane producer in the region.
"We are very pleased to have concluded the exit of our VREC investment. With the support from Darby International, VREC successfully navigated the difficulties of the pandemic along with the challenges of the sugar and ethanol sector in Brazil over the last several years resulting in a favorable exit" said Richard Frank, Jr., Darby International’s CEO.
"The exit of VREC is a significant achievement, serving as validation of our strategy in Brazil. Darby International’s investment in the Brazilian sugar and ethanol sector proved to be one of the most successful strategies in the space.” said Ricardo Roccia, Darby International’s Managing Director & Head of Brazil.
The exit of the investment in VREC adds to Darby's long history of successful investments in Latin America and follows the success of the Darby Latin American Mezzanine Fund I with 12 investments, all of which have been realized.
About Darby International Capital LLC
Darby International is a leading emerging markets private debt investor with a focus on Latin America and has offices in Washington, DC, Bogotá, Colombia, and São Paulo, Brazil. The firm was created after the team spun off from its previous firm, Darby Overseas Investments, Ltd. (a subsidiary of Franklin Resources, Inc.).
Darby International is not affiliated with Darby Overseas Investments, Ltd., Darby Overseas Partners, L.P., Franklin Resources, Inc. (NYSE: BEN) or any of their affiliates.
For more information, visit www.darbyinternational.com