Vinci Partners Investments announces investment in DM Card

By Edlyn Cardoza

Vinci Partners Investments Ltd., the controlling company of a leading alternative investment platform in Brazil, recently announced that “Vinci Impacto e Retorno IV”, or “VIR IV” (“the Fund”), the Impact family of funds managed by Vinci Partners’ Private Equity strategy, entered an agreement to invest a R$ 100 million in an investment round for the acquisition of a minority stake in DM Card, a FinTech focused on credit to low-income population and one of the leading Private Label card issuers to retailers in Brazil.

VIR IV has a unique strategy in Brazil, with a dual mandate to generate favourable market returns and impact by acquiring minority holdings in small-and-medium-sized Brazilian enterprises that exhibit growth potential and clear measurable environmental, social and governance, or ESG, goals. This transaction marks VIR IV’s fifth investment, resulting in a 43.7% gross allocation of the Fund’s R$ 1 billion in total capital commitments.

DM Card was founded in 2002, focusing on Private Label credit cards. Nowadays, the business holds an extensive geographic footprint, having a presence across 14 states in Brazil and partnerships with over 1,100 small and medium-size retailers within +2,300 stores throughout the country.

From VIR IV’s investment contribution, we expect to support DM Card to amplify its impact and become the financial services company of choice for low-income classes, being a reference on credit and productive microcredit to entrepreneurs, providing simple, tailored, and accessible solutions, promoting client diversity, providing financial education, and contributing to economic development.

José Pano, partner and head of the VIR strategy for Vinci Partners, said, “We are excited to partner up with DM, a company with extended expertise on credit for low-income clients that translates into a proven and profitable business model and foreseeable expansion. We believe there’s an opportunity for the Company to develop new products and channels as well as to become a digital-focused and omnichannel provider with a client relationship-oriented model. VIR’s investment creates a positive impact aligned with the Fund’s impact strategy, such as the promotion of financial inclusion to low-income individuals and the development of specific credit programs destined to education, home renovation and healthcare.”