GK VENTURES, LP
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
USD $ 5,000,000
Project scope and objective
The Project consists of an investment of up to US$5m in Fundo de Investimento em Participações – Multiestratégia (“Good Karma Impact Fund” or the “Fund”), a new Brazilian VC growth impact fund which aims to invest in early-growth-stage Brazilian companies, mainly, as well as other LAC companies, with proven business models and high-growth potential, with a core product, or service that promotes a measurable solution to a social and/or environmental challenge.
The Fund is incorporated in Brazil, with a feeder structure/fund in the US for non-Brazilian investors and will be managed by Good Karma Ventures Gestora de Recursos LTDA (“Good Karma” or the “Fund Manager”). Established in 2020, Good Karma is a young independent impact investment firm with an experienced investment team with deep knowledge in climate action, healthcare equity and social development. Good Karma’s team has invested more than US$4.7bn in private equity transactions.
With a target size of US$100m and a target net US$ IRR of 20%+, the Fund will invest 80% of the capital in approximately 6-8 mature venture-backed companies (Series B+) and 20% in 2 to 4 early-stage companies in sectors such as sustainable agriculture, decarbonization of industrial processes and energy, healthcare, education, and social development.
This transaction has a strong fit with IDB Invest strategic focus in supporting climate finance investments, health, and education sectors. It is also an opportunity to keep increasing IDB Invest relevance across all stages of the company life cycles, closing gaps in the “early growth” stage, as well as access to co-financing opportunities in developmental-strategic sectors.
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