The former Minister of Economy and his nominee will join the recent launch Renaissance Fund, according to sources with knowledge of the matter. The company invests in Latin America, excluding Argentina due to ethics regulations. This new project is a subsidiary of Greylock Capital Managementemerging markets hedge fund based in Stamford, Connecticut.

Sergio Massa He is also being targeted by two other funds, according to his press office. However, they said that “he is currently seeking an institutionally orderly transition, as he will remain minister until December 10.” Massa is the current Minister of Economy of Argentina, and the candidate facing Javier Milei in Sunday’s presidential election.

The masses are elected to lead a “super service” economy in 2022 by the president of Argentina, Alberto Fernandezin the midst of a massive crisis.

During his short one-year term, the economy was hit hard by a severe drought, which damaged Argentina’s main agricultural exports, at a time when foreign currency was badly needed, and many other ills. However, Massa presented himself as Fernández’s successor to run for president this year. He was defeated by the alliance outsider Milei and the established right-wing parties.

Previously, Massa had an extensive career in Argentine politics. Among other things, he was appointed head of the cabinet of ministers in 2008 and mayor of Tigre. He also founded his own party in 2013, “Update Front”. In mid-2022, President Fernández called him to try to improve the economy, although he only gave him one year.

“We are sure Massa will be a great fit for us,” he said. Hans Humes, CEO of Greylock. The two have known each other since 2017, when they talked about the political situation in the country and the resolution of litigation against Argentina. We know that other institutions are talking to him about future opportunities. But we are present in complex situations throughout Latin America, and given our unique fund structure, we believe that this fund is best suited for someone of your abilities.

He Renaissance Fund will focus on investments in energy, agriculture and infrastructure across Latin America. It will launch with existing positions in debt related to companies in the region, which will provide the capacity to work on debt-for-equity transactions. The bank will also be established to provide private debt and private equity financing.

“The approach taken is to help developing countries to overcome the challenges that Latin American economies have faced in recent years, with special attention to ESG issues,” continued Humes, in a telephone interview. On several occasions, these funds will also serve to facilitate debt restructuring at the corporate or state level; the latter is Greylock’s specialty.

The region was and remains a major center for the production of raw materials, in which the Renaissance fund plans to invest. Pass like Argentina, Brazil and Uruguay They are an agricultural powerhouse; Chile, Argentina and Bolivia hold more than half of the world’s lithium reserves, which are critical for the ecological transition; Several countries are also among the first to have the largest oil reserves, such as Venezuela, Guyana, Brazil and Ecuador.

South America in particular also has many rivers, which in economic terms means everything from trade to hydroelectric power, from irrigation to fresh water reserves. This region is also home to ecosystems that are important for climate stability, one of which is the Amazon rainforest. However, this region is still far from developing its potential to its full potential. Politics has become a major obstacle that must be overcome carefully.

Note published in Forbes US.