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; 5 to 7 years for long-term loans.


Business Criteria

— It is essential that the company have a strong management team with a successful history starting and/or managing companies or has other industry experience and education.

— “Growth Stage” companies with a strong track record of operations, a consolidated business model, and which have reached annual sales of at least $1M, and with at least two most recent quarters of positive EBITDA.

— Companies that can protect their market position through high barriers to entry, first-mover advantage, high-quality differentiated products, etc.

— 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.

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

Impact Criteria

Impact Type:

— Business model: inclusive businesses that generate decent jobs, sustainable incomes/cost savings for workers/suppliers/consumers from underserved communities as part of the core operations.

— Gender Lens: businesses committed to gender equity principles and to implementing improvements to achieve greater gender equity when necessary (gender diversity in governance and management, equitable hiring, compensation, and promotions, etc.)