Andes Plus Fund I LP
In November 2020, Andes Impact Partners launched its first mezzanine debt impact fund, Andes Plus Fund I LP (APF-I) with a target final close in November 2021. It's initial focus is Colombia and Peru, with the possibility to expand to other countries in the region. It is aimed at inclusive businesses which incorporate low-income or underserved communities in their value chain, improving the incomes and quality of lives of these populations.
The fund targets companies in three focus sectors: 1) agribusiness (except for primary agriculture), 2) light or artisanal manufacturing, and 3) inclussive technologies (businesses with technology based solutions that enable low-income or underserved communities to either increase their income or save on costs).
The criteria for applicants wishing to obtain growth focused funding from Andes Plus Fund I include the following: the companies need to have sales above $1M a year, positive EBITDA, and an expansion plan that requires capital injection to not only grow revenues but to also increase income or cost savings opportunities for the communities participating in their value chain. The companies are required to have a direct impact on at least 500 people from vulnerable communitites participating in their operation as workers, goods or services providers, distributors or consumers. Additionally, the companies need to be aligned with principles of gender equity and be willing to work to improve on these as needed.
APF-I will make its investments primarily via long term mezzanine debt, a financial instrument with maturities between three and eight years, with flexible payment schedules tailored to companies' cash flow profiles, repaid with company cash flows. This instrument is not equity capital requiring ownership or control rights, and it isn't traditional bank debt requiring high levels of collateral. It can offer grace periods and have a fixed plus variable return components linked to the success of the expansion plan. This allows the fund to share in the business risk of the companies in such a way that the fund, along with the company owners, will increase its returns should the growth plan be successful.
The current fund investors are:
Dutch Good Growth Fund
The Dutch Good Growth Fund (DGGF) provides financing to intermediary funds and financial institutions with the goal of developing financial ecosystems for missing middle SMEs in developing countries and emerging markets. Spurring growth of inclusive businesses and businesses led by young and female entrepreneurs is at the heart of the DGGF mandate. The DGGF is owned by the Dutch government and managed by Triple Jump and PwC.
Blink is a single-family office focused on promoting market-based solutions to poverty, social and economic inequality, and environmental degradation. Blink does this mainly by investing in highly impactful investment funds along three broad themes: economic empowerment, access to basic goods and services, and environmental protection. It also makes selective direct investments in highly scalable businesses that generate significant impact in one or more of these impact themes. Blink focuses primarily on Sub-Saharan Africa, Latin America and South & Southeast Asia, but it also selectively invests in developed markets.
Ceniarth is a single-family office focused on funding market-based solutions that benefit underserved communities. Through a range of investing activity, Ceniarth provides capital to enable the deployment of products, services, and support that directly impact marginalized, primarily rural, populations. Ceniarth aims to finance enterprises and intermediaries in ways that lead to long term growth and sustained benefits to communities. It funds non-profits, for-profits, and hybrid organizations.