Brazilian private equity investment firm DXA investments has launched its second private equity growth fund with a target of US$75m.

(Bloomberg) DXA Investments, the Brazilian investment firm that manages $200 million, is targeting $75 million for its second private equity growth fund, Chief Executive Officer Oscar Decotelli said.

The Rio de Janeiro-based firm, which makes control investments in small and mid-size Brazilian companies, is seeking another $75 million for co-investments, Decotelli said in a phone interview.

The firm’s first fund, the $50 million DXA Excelsior pool, invested in companies including pet accessories retailer Zee.Dog, which has opened stores in the U.S. and Canada, and freight, transport and storage company Modern Logistics.

DXA is raising the new fund as Brazil, which has been rattled in recent years by waves of corruption allegations, emerges from one of its worst recessions in history. The country’s central bank expects foreign direct investment to climb by $5 billion to $80 billion in 2018.

Despite recent attempts to fix the problem, investors are still concerned about corruption in Brazil and about the potential for unrest surrounding its 2018 general election, Decotelli said. At the same time, investors are being lured to private equity’s potential to generate higher returns in a low-yield environment, he said.

Backers of the firm’s first private equity fund include U.S., European and Brazilian family offices, Decotelli said. The new fund, DXA Excelsior II, is also attracting interest from institutional investors, he said.

Decotelli co-founded DXA with Gustavo Ahrends in 2012 after working together at Vision Brazil Investments. DXA also invests in liquid credit and equities.