Modern Logistics (WD, Sao Paulo Guarulhos) has secured investment from an affiliate of H.I.G. Capital, a Miami-based global private equity and alternative assets investment firm. The terms and size of the investment were not disclosed but, a statement said, it was executed via convertible debt thereby giving the affiliate the right to convert the debt into an equity holding at some point in the future.

Modern Logistics is a Brazilian integrator which was founded by former JetBlue Airways vice president and co-founder of Azul Linhas Aéreas Brasileiras, Gerald Lee. It is backed by DXA Investments, an independent asset management firm based in Rio de Janeiro, Brazil.

"This transaction confirms our commitment to the region. We are very excited to work alongside Gerald Lee and DXA Investments in taking Modern Logistics to the next level," Fernando Marques Oliveira, Managing Director and Head of H.I.G. Brazil/ Latin America, commented.

Including this convertible debt issuance, Modern Logistics has now raised USD65 million in funding from H.I.G. and other investors. It expects to raise up to USD150 million, to be used for working capital needs for its expansion, and to that end, contracted the investment bank Evercore Inc. in autumn 2018 to find other investors.

Aside from its fleet of two B737-300(F)s and two B737-400(F)s that connect the Brazilian cities of Brasilia, Sao Paulo Viracopos, Recife, Rio de Janeiro Int'l, and Manaus, Modern Logistics also boasts eight distribution centres and more than 14,000 delivery and haulage trucks connected to its network.

Its pre-COVID-19 business plan envisaged growing its fleet to 35 to 40 aircraft over the next five years complimented by warehouses servicing more than 200 cities across Brazil.