IG4 Capital Investimentos is raising a new US$400m fund for private equity investments in distressed Brazilian companies.

(Reuters) IG4 Capital Investimentos SA is raising a new $400 million fund for private equity investments in distressed Brazilian companies, founder Paulo Mattos told Reuters on Wednesday.

Mattos expects to select up to eight investments among real estate, infrastructure and industrial companies in so-called special situations. These may be companies with an unsustainable debt burden, involvement of controlling shareholders in corruption probes or regulatory hurdles, Mattos said in an interview in Sao Paulo.

IG4’s first fund raised 400 million reais ($124 million) to invest in sanitation company Iguá Saneamento SA. The company, formerly known as CAB Ambiental, was acquired in July from Galvão Engenharia SA, one of Brazil’s construction conglomerates forced to sell assets after being targeted in Brazil’s largest corruption probe.

The second fund has raised $100 million so far with Park Hill Group, a division of PJT Partners Inc, acting as a placement agent, Mattos said. Mattos, a former executive of GP Investment Ltd, founded his own firm in 2015.