Project detail - ALAOF V NLD, L.P.

ALAOF V NLD, L.P.

Status: Approved investment
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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 customer

Together with ACON Latin America Opportunities Fund V-A, L.P., the fund will make control equity, protected minority and structured equity investments in middle-market companies in certain countries in Latin America. The Fund is managed by an affiliate of ACON Investments L.L.C. The fund has a target total commitment of USD 600mln and is ACON's fifth consecutive investment program dedicated to Latin America.

What is our funding objective?

The objective of FMO's commitment is to foster private-sector-led growth and job creation across Latin America, by making risk capital and strong social, environmental and corporate governance practices available to an underserved market segment.

Why do we fund this investment?

Compared to other markets, the penetration of private equity in Latin America is still low and the availability of structured capital solutions is rather limited. As an investor of ACON Latin America Opportunities Fund V-A, L.P., FMO supports the swift and successful fundraising of a smart capital pool that is intended to enhance the availability of structured capital solutions for middle-sized companies across Latin America.

What is the Environmental and Social categorization rationale?

Based on the fund’s investment strategy and pipeline, ACON Latin America Opportunities Fund V-A, L.P. and ALAOF V FMO L.P. have been classified as Category A in accordance with FMO’s Sustainability Policy. As the fund invests in a diverse set of industries, the actual E&S risks may vary from investment to investment. The fund’s manager has an existing Environmental and Social Management System in place and FMO is working with them to improve it. Compliance with local regulations and IFC Performance Standard (PS) framework for PS-triggered transactions will be required. FMO continues to engage frequently with the manager to monitor and provide feedback on the fund’s E&S performance. In addition, FMO will continue liaising with ACON on ways to add value and maximize impact together.

More investments

Date Total FMO financing
11/8/2019 USD 10.00 MLN
Region
Latin America & The Caribbean
Country
Latin America & The Caribbean
Sector
Infrastructure, Manufacturing and Services
Publication date
12/21/2020
Effective date
1/27/2021
Total FMO financing
USD 4.00 MLN
Funding
FMO NV
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