Ecoenterprises Partners IV L.P.
Status: Investment in contracting phaseWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Ecoenterprises Partners IV L.P. is a private equity Fund that is targeting a fund size of USD 150mln and will be managed by Ecoenterprises Impact Management. The Fund will pursue equity and mezzanine debt growth capital opportunities in 15-20 impact-driven and nature-based Small- and Medium-sized Enterprises (SMEs) in Latin America.
What is our funding objective?
FMO will participate in the first close of the Fund as an anchor investor. Ecoenterprises Partners IV will invest in compelling, scalable SME businesses that actively contribute to the creation of sustainable livelihoods and the sustainable use of natural resources.
Why do we want to fund this investment?
With this fund participation, FMO will continue supporting a Fund Manager investing in future-proof companies that work on nature-based solutions and sustainable agricultural production. The sector has grown and is at a point of inflection where Ecoenterprises Partners IV will be able to invest slightly larger ticket sizes to more mature companies, promising increasing impact and financial returns. The Fund’s focus on nature-based solutions aligns well with FMO’s climate ambitions in forestry and agriculture as part of its Strategy 2030. The Fund Manager is women-led and is in scope of the 2X Challenge.
What is the Environmental and Social categorization rationale?
This is considered an E&S category A investment as the Fund’s mandate allows sourcing category A opportunities. However, most of the portfolio companies are expected to be category B/B+. Whilst potentially all IFC Performance Standards may be triggered in the fund portfolio, typical risks are linked to land use/biodiversity changes, worker welfare, and community health and safety. Risks related to indigenous people, land tenure, and smallholder rights may be triggered as well. The Fund Manager leans on vast experiences of past funds with similar risks and has a dedicated team to further strengthen and implement the risk-commensurate environmental and social (E&S) management system. E&S risk management is thereby an integral part of the fund operations and included in the engagements at the boards of the portfolio companies. Transparent reporting demonstrates materialization of high impact in regions most in need.
More investments
| Date | Total FMO financing |
|---|---|
| 4/12/2024 | USD 0.59 MLN |
- Website customer/investment
- https://ecoenterprisesfund.com/
- Region
- Latin America & The Caribbean
- Country
- Latin America & The Caribbean
- Sector
- Agribusiness, Food & Water
- Publication date
- 7/31/2024
- Deadline for feedback
- 9/29/2024
- Total FMO financing
- USD 15.00 MLN
- Funding
- Mobilizing Finance for Forests
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A