AIP is partnering with AMPLO to structure and manage a blended finance fund that will invest in gender-inclusive Nature-Based-Solutions Enterprises (NBSEs) in three focus sectors:  sustainable agribusiness, bioeconomy, and sustainable tourism. The fund targets small and medium-sized NBSEs operating in Peru, Colombia, and Central America. These businesses are typically underfinanced by the traditional finance providers, particularly if they are women-owned. Blooming Roots aims to increase access to finance for such businesses while generating economic opportunities for rural communities and fostering sustainable use of natural resources.

Blooming Roots will provide flexible self-liquidating long-term financing to the portfolio companies in the form of convertible debt, revenue-based financing, royaly-based loans, and equity.

The fund target size is $50M with the first close expected by December, 2024. The fund will also raise grant capital to finance business strengthening services to portfolio investees and impact measurement, and to finance the first loss tranche and partial portfolio guarantee to provide downside protection to investors.

Blooming Roots uses a blended finance approach which is crucial to drive value creation, mitigate critical challenges, and ensure portfolio companies are well-prepared for investment and growth.

Blooming Roots is currently accepting commitments from grant makers (to finance the first loss tranche and the guarantee), concessional capital providers and impact investors (to finance portfolio investments). 

The fund's investment strategy is designed to provide appropriately structured financing to the businesses while increase liquidity and lowering risk for investors.

The Blooming Roots fund uses a three-dimension approach to support NBSEs: 

Pre-Investment Readiness

To target the challenge of low formalization in management practices and inadequate preparation to attract and manage growth investment capital.  

Post-Investment Support

To tackle several challenges, including the lack of robust management tools and processes and the narrow business models that limit inclusivity. This support assistance will focus on enhancing management capabilities and establishing sound impact measurement practices. 

Direct Investment Structures

With flexible investment terms crafted to align with the cash flow needs and unique characteristics of NBSEs, recognizing their varied business models and revenue cycles.