Project detail - Ecoenterprises Partners IV L.P.

Who is our customer

EcoEnterprises (“EcoE”, the “Fund Manager” or “FM”) is a women-led fund manager with a 20+ year track record of building investment portfolios with a focus on critical natural ecosystems in LAC. As a pioneer in biodiversity investing, they finance growing businesses to preserve and restore natural habitats, promote climate action, and create social equity alongside financial returns. FMO is an investor in EcoE II and III. The FM is currently fundraising for their fourth fund (“Fund IV”) with first close expected in 2024. Terrasos S.A.S. (“Terrasos”) structures and operates environmental investments focusing on the Colombian compliance market for biodiversity offsets. Terrasos is considered a credible target for Fund IV.

What is our funding objective?

FMO’s financing will enable Terrasos to deliver on its three short term priorities to improve the resilience of their business model and replicate their impact. 1) To develop new revenue streams from existing Habitat Banks alongside the biodiversity credits, such as non-timber forest products or eco-tourism. 2) To further develop their approach and structures to generate and market biodiversity credits for the voluntary market. 3) To expand their consulting operation, allowing them to replicate their impact by working with other biodiversity net-gain initiatives across LAC. By financing Terrasos ahead of the first close of Fund IV, FMO also facilitates the fund manager warehousing of the deal.

Why do we fund this investment?

The proposed repayable development contribution fits well with MFF’s mandate as Terrasos’ core business model involves the protection and restoration of valuable threatened ecosystems, including forested areas. By structuring the facility with existing FMO investee EcoE, FMO works with a familiar and trusted party with deep biodiversity expertise and a solid track record in managing impactful SME investments in LAC. Further comfort is also provided via the prior/existing involvement of other trusted partners (P4F, IDB, WWF, USAID). Our MFF partners in the UK Government are also very supportive of Terrasos. Lastly, Terrasos is an exciting opportunity for FMO to deliver on the biodiversity ambitions of the Strategy 2030, and to gain exposure to the novel and emerging market for biodiversity credits. By backing a global frontrunner in the sector, FMO can build much needed expertise in this increasingly important focus area for results-orientated impact generation and co-ordinated conservation interventions.

What is the Environmental and Social categorization rationale?

N/A