Evaluating the Social Value of Impact Investments: Vox Capital and Magnamed



Graziella María Comini

Juliana Rodrigues

Rosa Amelia Gonzalez

Rosa María Fischer


FEA-USP Sao Paulo

IESA Business School Venezuela

Published in


Vox Capital was a pioneer as an impact investment company in Brazil, with the purpose of creating a world where businesses can generate positive social transformations. Vox Capital decided to invest in businesses that improve the current essential service provision, such as the Health Sector, and that contribute to the reduction of social inequalities in Brazil. In 2015, Vox Capital decided to invest in Magnamed, a Brazilian company, 100% national, which develops, manufactures and sells medical equipment, specialized in pulmonary ventilation for the care of hospital patients dependent on critical care (intensive care) and transportation of patients in ambulances. Around 70% of the Brazilian population relied on the public health system (SUS) when they needed assistance, especially low-income classes. But SUS had a mayor problem, which was the shortage of beds in hospitals, mainly due to lack of both equipment and trained personnel capable of operating them. Vox Capital invested in Magnamed because its products could make SUS better, reducing inequalities in access and quality of health service. Their products were cheaper, easy-to-use and were better adapted to the living conditions of our country (have longer-lasting batteries and take up less space). Magnamed’s main markets were emerging countries, in which the characteristics of the Brazilian equipment were suited to local realities. In 2017, the company announced bold internationalization plans with the opening of its first international factory, with an investment of $ 2 million, in the United States. The situation portrayed in this case is fictional and reflects some questions faced by Gilberto Ribeiro, a partner of Vox Capital. In this scene, Gilberto was challenged during a public event by the moderator of the panel in which he participated with the question, “In seeking to grow abroad, does the company [Magnamed] continue with its social focus?

Do Brazilian public hospitals no longer have a shortage of beds and equipment?” Dissatisfied with his own response, Ribeiro acknowledged that Vox Capital had to evaluate its investment in Magnamed. If was not clear how the company’s growth strategy aligned with the generation of social value. Should Vox continue to invest in Magnamed? Why? What were Vox options in the case of Magnamed?