Investee: Abraaj Latin America Fund II, L.P.
FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
Lucas de Beaufort
USD $ 3,000,000
Project scope and objective
ALAF II (the “Fund”) is a multi-sector fund that will invest growth capital in middle market businesses in Latin America. The Fund is the Abraaj’s Group (“Abraaj” or the “Group”) first Latin America Fund. The Fund has a regional approach focused on Mexico, Colombia, Peru, and Chile, to take advantage of the regional integration occurring through the Pacific Alliance. Opportunistically, the Fund may invest in other countries in South America and Central America (primarily Costa Rica and Panama). The regional integration, together with Abraaj’s team value-added will contribute to the creation and improvement of the phenomenon of Latin American multinational corporations, better known as multilatinas.
Abraaj is a leading fund manager focused on emerging markets across the world, and most recently Latin America. Abraaj currently manages US$9 billion, encompassing investments in ten broad sectors and 50 countries. To date, the Group has made over 165 investments and has achieved over 70 exits in multiple differing economic environments.
The Fund will invest in middle market businesses in sectors that are related to macro-trends like growing urban centers, and regionalization with focus primarily on companies whose growth is driven by private consumption and domestic demand.
The IIC’s participation in the Fund, for up to US$3 million, is expected to play an important role in furthering the engagement of the Abraaj Group with the IDB Group and with the Latin American and Caribbean region. This would give the Fund access to: technical assistance programs, key sector regional experience and network, potential additional sources of financing for co-investments or follow-on investments in the Fund’s portfolio companies, and access to best practices in corporate governance and environmental and social standards. The success of the regional integration of the portfolio companies of the Fund will create employment opportunities and develop further business links in the Pacific Alliance.
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