November 26, 2021
IDB Invest has invested $10 million in CASEIF IV L.P. (CASEIF IV), a new mezzanine debt and private equity fund managed by LAFISE Investment Management Ltd. (LIM) that will provide mezzanine finance and equity for high-growth potential mid-sized companies in Central America, Panama, the Dominican Republic, as well as in Colombia.
With a target size of $75 million and $450,000 of technical assistance funds, CASEIF IV is expected to be the largest local mezzanine fund focused on mid-sized companies ever raised. By providing incremental access to mezzanine and equity financing options, CASEIF IV is expected to help local companies unlock productivity gains, expand operations, including cross-border expansions, and capitalize on global supply chain integration opportunities. It may also contribute to job creation, and alleviating the effects of both the COVID-19 crisis and recent hurricane storms, as well as help reignite economic growth in Central America in the aftermath of the pandemic.
CASEIF IV, with a five-year investment period, will provide access to a combination of much needed growth funding and technical assistance to around 12 mid-sized companies with an average investment ticket size of $6 million.
IDB Invest’s gender, diversity and inclusion (GDI) advisory services will support LIM to increase its capacity and understanding of GDI best practices and deliver training to CASEIF IV portfolio companies, focused on the value of diversity and 2X Challenge gender equity criteria. IDB Invest will also advise LIM in the application of the Women’s Empowerment Principles gender gap analysis tool (WEP) to the Fund’s investee companies, to create awareness and identify opportunities to improve gender equality in their leadership teams, operations, and product offerings.
IDB Invest will work with LIM to align CASEIF IV with the 2X Challenge to help mobilize private capital to projects that empower women in at least 30% of the investee companies.
In addition, IDB Invest will work with LIM to incorporate industry best practices in integrity matters and their Environmental and Social risk management, by requiring them to implement environmental and social management systems according to IDB Invest’s standards.
This deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): No poverty (SDG 1), Gender Equality (SDG 5), Decent work and economic growth (SDG 8), Reduced inequalities (SDG 10) and Responsible consumption and production (SDG 12).