A new SFMF2 investment: capturing growth opportunities in the Brazilian tech sector

We are pleased to announce that on January 19th, we closed the fourth secondary acquisition in SFMF2: a BRL 13mm (ca. $4mm) investment in Oria Tech Secundario Fund (Oria Fund), managed by Oria Capital. This transaction enabled us to buy into a diversified portfolio of six companies at an attractive valuation while increasing SFMF2’s exposure to an important high-growth region.

The Oria Fund’s portfolio consists of six mid-market technology companies – five in Brazil and one in Argentina – serving the needs of SMEs in fast-growing sectors, including fin-tech, healthcare, retail, telecom and fleet management. Most companies have a specific focus to offer high-quality, affordable products to boost SME growth.

Take Pixeon – a software provider addressing the imaging and workflow needs of diagnostic healthcare providers in small and mid-sized hospitals in Brazil, Chile and Argentina. Responding to strong demand, Pixeon’s revenues grew 270% from 2014 to 2017. Oria Capital aims to assist Pixeon in expanding the company’s operations across Brazil.

Oria Capital’s founders have been active in the Brazilian tech sector since 1990. The full transaction, comprising six companies, closed with BRL 71mm (ca. $22mm) in November 2017. The portfolio has shown strong revenue growth in the past years despite the macro headwinds in Brazil, and we expect strong growth going forward as well. Sarona was selected together with only two other highly respected investors from the region to participate in this opportunity.