Neon, a digital bank and FinTech firm whose mission is to better the lives of Brazilian workers, has disclosed that it has secured $80 million for its initial Credit Rights Investment Fund (FIDC) focusing on credit cards. With this investment, the overall equity fund rises to $170 million US, which is forecast to nearly treble.

“The funding endorses the strength and positive history that we have been building in the management of the credit portfolio over the last few years. Today our credit engine is mature and the FIDC resources will give us the strength to continue expanding our portfolio in a sustainable and balanced way in the med-long term. The focus continues to be on the Brazilian worker, and always with the mission to reduce inequalities by building paths to credit,”

                                                                                                    Jamil Marques, CFO of Neon.

Given that Neon had already raised little more than $40 million for its private payroll deductible FIDC at the beginning of 2022, this is the second fundraising effort the company has made in the private credit market this year. Emprica, an asset management company with more than 12 years of market expertise, a concentration on structured credit, a portfolio of more than 50 funds, and more than $1.5 billion in assets under custody, was given credit for managing the FIDC with a focus on credit cards.

“We are excited about this partnership that began on the first months of the year as a one-off investment in another Neon FIDC, focused on private payroll loans. Based on this good experience, we expanded our relationship to take over the management of the credit card fund. The intention is to bring more comfort and security to investors, including ourselves who, via funds managed by us, contributed a total of $20 million to FIDC Neon. This shows an alignment of interests with the other investors in this fund,”

“The check may increase as the FIDC grows. In addition to Empírica, XP and BV also led investments in the FIDC.”

                            Giuliano Longo, Managing Partner of Business Expansion at Empírica.