ALIVE Early Growth Fund II LP
Status: Approved investmentWhy 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 customer
ALIVE Early Growth Fund II LP (“ALIVE”, “the Fund”), a USD 80m target generalist PE Fund currently being raised by Acumen Latam Impact Ventures (“the Fund Manager”). The Fund will pursue equity/mezz growth capital opportunities in 8-10 impact-driven early-stage companies / SMEs with scalability potential that are addressing challenges of low-income communities in Latin America (mainly in Colombia and Peru).
What is our funding objective?
FMO supports the Fund Manager with an USD 8 - 10 million equity ticket in the second close, increasing the fund size to USD 40m. The Fund focuses on impact-focused companies, which makes impact central from the selection process until after the (responsible) exit. It collects data to confirm ratios for (i) improved quality of life, (ii) gender inclusion, and (iii) low income-groups reached with the ambition of making a positive contribution to the financially more vulnerable population.
Why do we fund this investment?
ALIVE has a credible PE team with a strong focus on achieving the above impact goals. It is considered balanced, well-connected and well-positioned to contribute to reducing inequalities within Colombia. FMO applies an Reducing Inequalities Label to the Fund.
What is the Environmental and Social categorization rationale?
This Fund will have the E&S risk category B as most investments are considering low to medium risk (tech-enabled SMEs with limited capex requirements). IFC PS 1-4 will be mostly triggered. ESG awareness is deemed well entrenched in the team and is of the centre of attention in each stage of the investment process. FMO aims to contribute to the Fund Manager further developing and implementing ESG best practices.
- Region
- Latin America & The Caribbean
- Country
- Colombia
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 8/17/2023
- Effective date
- 2/7/2024
- Total FMO financing
- USD 10.00 MLN
- Funding
- Building Prospects
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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) - B