H.I.G. Capital led a US$65m investment in Brazil-based full service logistics firm Modern Logistics through a convertible debt with participation from other investors and unnamed family offices. Modern Logistics is also backed by Brazilian fund manager DXA Investments.
(Press Release) H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity investment firm with $37 billion of equity capital under management, announced today that one of its affiliates has invested, through convertible debt, into Modern Logistics, a leading Brazilian one-stop-shop full service logistics firm. Terms were not disclosed.
Modern Logistics, the only firm of its kind in Brazil to have its own fully integrated air cargo operation dedicated to long distance, time-sensitive, and warehousing capabilities, was founded by former JetBlue VP and Co-founder of Azul airlines, Gerald Lee. The company is backed by DXA Investments, a private equity and venture capital investment firm.
Fernando Marques Oliveira, Managing Director and Head of H.I.G. Brazil/Latin America, commented: “This transaction confirms our commitment to the region. We are very excited to work alongside Gerald Lee and DXA Investments in taking Modern Logistics to the next level.”
“We are excited to have H.I.G. participating in our future. Modern is transforming Brazil by creating the most efficient logistics network in the region,” said Gerald Lee, CEO and Founder of Modern Logistics.
Including this convertible debt issuance, Modern has raised U$65 million in funding from H.I.G. and other investors. Modern expects to raise up to U$150 million, to be used for working capital needs for its expansion.
“Being able to secure this investment during this difficult time is outstanding. We congratulate Gerald and the team at Modern, who will continue to generate jobs, reduce distances and connect producers with customers in a country that lacks infrastructure,” said Oscar Decotelli, CEO and Founder of DXA Investments.
About Modern Logistics
Modern Logistics is the only one-stop-shop logistics player in Brazil. The company has 8 distribution centers, more than 14,000 trucks connected to its network and operates its own air cargo operation, with a current fleet of 4 aircrafts. Modern’s approach enables businesses to use its unique platform to create jobs, reduce inefficiencies and create new markets in a U$150 billion addressable market. www.modern.com.br
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $37 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, São Paulo and Bogotá, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:
H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.