IDB Invest Supports Sustainable Private Capital Ecosystem in the Caribbean
IDB Invest is investing up to $10 million in equity in PCF III S.L.P. (Portland III), a multisector fund managed by Portland Private Equity focused on medium‑sized companies in the Caribbean. A pioneer investor in the Caribbean with a strong sustainability practice, Portland is one of IDB Invest’s strategic partners in the region.
Portland III will support the growth and regional expansion of mid-size companies in the Caribbean, by providing capital, operational expertise, a network of strategic partners, and a gender lens approach to its investments. Portland III would become the first private equity fund in Latin America and the Caribbean to apply the Science-Based Targets Initiative (SBTi) methodology for greenhouse gas emissions reductions and is expected to be the first to rate and improve the climate resilience of the real estate assets owned or leased by portfolio companies with the novel Building Resilience Index (BRI).
IDB Invest’s participation includes $3 million of blended finance, marking the first commitment from the Finland-LAC Blended Finance Climate Fund (FBF), which is administered by IDB Invest. IDB Invest’s commitment, jointly with other partners including other development finance institutions as well as private sector investors, allowed Portland III to reach its first closing at $100 million.
Portland III will provide funding for gender responsive businesses as per 2X Challenge criteria and would contribute to the following United Nations’ Sustainable Development Goals (SDGs): Gender Equality and Reduced Inequalities (SDG 5 and SDG 10); Decent Work and Quality Jobs (SDG 8); industry, Innovation, and Infrastructure (SDG 9); Responsible Consumption and Production (SDG 12); and Climate Action (SDG 13). Additional SDGs will be supported through Portland III’s overall environmental and social program.
The FBF participation provides concessional capital to the Portland III Fund structured with an innovative impact-linked carry to enable and incentivize the fund to achieve ambitious climate mitigation and adaptation targets and climate disclosures.
In addition, IDB Invest is providing advisory services to reinforce the fund’s sustainability, and Paris Alignment strategies and building capacity for the fund to achieve the ambitious climate targets set in the FBF participation.
IDB Invest’s Division Chief for Financial Institutions, Marisela Alvarenga, said: “We are excited to deepen our partnership with Portland, one of the pillars of private equity in the region, widen our presence in the Caribbean, and to make our first investment through the recently established Finland-LAC Blended Finance Climate Fund.”
Portland’s founder Michael Lee-Chin said: “Portland Private Equity is proud of its long track record of doing good and doing well in this overlooked and underserved region. We are honored to have IDB Invest, key development bank for Latin America and the Caribbean, continue its relationship with us and join this fund at this critical time.”
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Portland Private Equity
Portland is a leading private equity fund manager committed to sustainable wealth creation for all through the growth of remarkable, responsible, entrepreneurial businesses. The firm has focused on the large, overlooked and underserved countries in the Caribbean Basin and Latin America and has developed a unique and extensive regional platform for execution. The firm established its first fund, AIC Caribbean Fund (ACF), in 2007 with a size of $225 million. Portland’s second fund, PCF II, is a $212.5 million investment fund fully invested in 10 portfolio companies across the Caribbean and Latin America, and currently in divestment mode.
About Finland-LAC Blended Finance Climate Fund
The Finland-LAC Blended Finance Climate Fund is a trust fund supported by the government of Finland with the objective to catalyze greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, and with a focus on poor and vulnerable countries and communities, gender equality, diversity, inclusion and biodiversity.