IDB Invest announced an investment of up to $30 million in the MK Empowerment Private Debt I Fund, a private debt fund that will provide credit solutions to middle-market companies in Peru. The fund will be primarily focused on companies that require financing to support growth opportunities and improve their productivity.

The fund will invest primarily in private debt, through corporate bonds and loan participations, supporting middle-market companies' access to medium- and long-term financing, and adding value to local capital markets.

The fund combines the experience of Macrocapitales and Macroconsult, two companies that are part of the Macro Group, to offer a unique product in the market. Managed by Macrocapitales, a company with more than 14 years in asset management and an advanced focus on environmental, social and corporate governance (ESG) criteria, the fund is enhanced with the contribution of Macroconsult, a leader in multi-sector impact studies, social analysis and inclusion strategies. This synergy allows for the integration of robust ESG criteria, measuring financial and social impact, and developing strategies that maximize financial performance and business sustainability.

Peru's business environment is diverse, with companies of different sizes and potential. Middle market companies, key to growth, increased productivity and employment, face difficulties in financing expansion and growth projects due to, among others, the short terms of the loans they access, high demands for collateral and limited access to capital markets.

ESG practices play a crucial role in the transition towards a more sustainable economic system. In recent years, ESG investment in Peru has moved from being a niche practice to becoming a significant force in the financial landscape. This change reflects a growing recognition that sustainable investment practices can drive long-term returns while addressing critical social challenges.

With this transaction, IDB Invest supports the emerging private credit sector in Peru, investing in a fund that will provide financing to Peruvian companies, contributing to the development of local capital markets and integrating ESG practices in each investment.

IDB Invest's investment is complemented by technical advisory services designed to develop a roadmap to align with the International Sustainability Standards Board (ISSB) standards in components S1 (disclosure of sustainability-related information) and S2 (disclosure of climate-related information).

In addition, the technical consultancy will support the fund manager's initiatives on gender equality in the workplace by evaluating and improving existing policies, establishing key indicators to monitor their implementation, and developing a program of practices focused on women, strengthening their capacities in private capital markets, investment banking, and consulting.

The project seeks to contribute to the following United Nations Sustainable Development Goals (SDGs): Gender equality (SDG 5), Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Responsible consumption and production (SDG 12), and Partnership to achieve the goals (SDG 17).

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of US$21 billion in managed assets and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in various sectors. Visit our website idbinvest.org.

About Macrocapitales

Macrocapitales is an investment fund management company regulated by the SMV in Peru. It has more than 14 years of experience in the management of assets such as private debt, private equity and factoring. It has obtained investment commitments for an amount greater than US$420 million and, at the Grupo Macro level, it has structured and led debt transactions for more than US$1,000 million in sectors such as energy, education, transportation, commerce, industry and health. With a team with extensive experience in investments and consulting linked to the field of social development and energy transition, the manager integrates ESG criteria in its investment and monitoring processes to the highest standards. It is part of Grupo Macro, with the support of partners recognized for their prestige, independence, reliability and level of technical advice. Learn more at grupomacro.pe/macrocapitales/.