InvestmeNt Criteria

Mission Fit Criteria

We seek to invest in for-profit enterprises committed to gender equity principles which provide goods and services and generate decent jobs and sustainable incomes for under-served communities; engaging them in their value chain as suppliers, retailers, employees or consumers.

Geography:

— Primary focus: businesses with the majority of their operations in Peru, or Colombia

Target Sectors:

Sustainable Agribusiness/Food Processing (prioritizing Climate-Smart Strategies): companies along the agricultural value chain, including Ag- Tech

Light Manufacturing: Ethical Fashion and Artisanal Manufacturing (companies that hire or buy from artisans)

Inclusive Technologies: Companies using tech-based operational platforms to build competitive advantages for underserved communities, such as fintech for low income consumers, or online platforms connecting micro-entrepreneurs to markets

Financial Criteria

Investment Terms:

— Amount: USD 750,000 to USD 2,500,000 per company with the possibility to invest larger amounts.

— Structure: mezzanine debt, senior debt.

— Control: no control rights in terms of equity ownership and/or voting rights.

— Term: up to 2 years for working capital loans; 6 to 8 years long term investment.

Preferred Situations:

— Firms with at least $1M annual revenues and EBITDA positive,

— Investment is key to scaling up the company, and

— Investment represents less than 50% of company’s total capital base and/or annual revenues.

Impact Criteria

Impact Type:

— Business model: inclusive businesses directly impacting people from under-served communities (through generating employment, incomes, or cost savings), with potential to grow impact during the investment lifecycle.

Gender Lens: businesses committed to gender equity principles and to working on improvements where necessary (gender diversity in governance, management, hiring, compensation, promotions, etc.)

Environmental, Social, Governance (ESG): companies that are committed to sound environmental, social, and governance standards and practices, and are open to working with APF-I to improve these areas if necessary.


Social Impact Policy

AIP - Social Impact Policy.pdf