IDB Invest announced an equity investment in EcoEnterprises Partners IV Fund of up to $10 million to provide tailored growth capital supporting small and medium-sized enterprises (SMEs) in Latin America and the Caribbean. The investment comprises $5 million from IDB Invest and $5 million from the Finland-LAC Blended Finance Climate Fund.

With a target size of $150 million, the Fund aims to increase long-term financing for innovative, nature-based companies in the Amazonian, Andean, and Meso-American regions that focus on preserving and restoring biodiversity, fostering ecological solutions, and promoting resilient growth. Investments will target sectors such as agriculture, agroforestry, aquaculture, ecotourism, energy, and the circular economy while contributing to the development of a resilient economy.

Latin America and the Caribbean is home to 40% of the world’s species, making its biodiversity vital for clean water, air, pollination, and regulation. It supports key industries like agriculture and tourism but faces degradation, with forest cover declining by 138 million hectares between 1990 and 2020 and wildlife populations dropping by 94% from 1970 to 2018—the highest loss globally. Protecting it is essential for sustainable development, disaster resilience, and the well-being of vulnerable communities.

A key feature of the Finland-LAC Blended Finance Climate Fund participation is its impact-linked carry structure, designed to incentivize the achievement of countries' climate and nature-related targets, including alignment with the Taskforce on Nature-related Financial Disclosures (TNFD) framework and the adoption of the Science-Based Targets initiative (SBTi) methodology for greenhouse gas emissions reductions.

Aside from the investment, IDB Invest will provide advisory services to EcoEnterprises to support its adoption of the TNFD framework. This aims to address nature-related risks such as biodiversity loss and ecosystem degradation, while strengthening EcoEnterprises’ risk management capacity in alignment with the Environmental and Social Action Plan (ESAP). 

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 $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website www.idbinvest.org/en.  

About EcoEnterprises

EcoEnterprises Fund is a women-led firm with an unparalleled track record of 25 years investing in natural climate solutions. A pioneer in impact investing, EcoEnterprises works with growth businesses that achieve transformative environmental and social impacts. Through tailored, long-term financing, and value creation services, EcoEnterprises has financed nearly 50 impactful companies in Latin America and the Caribbean that build community partnerships to boost returns, enhance biodiversity, and promote climate resilience. With the fourth fund under management, EcoEnterprises continues to deliver portfolio results, boost sustainable and inclusive livelihoods, and preserve our most important natural asset: Planet Earth.

About Finland-LAC Blended Finance Climate Fund

The Finland-LAC Blended Finance Climate Fund is a trust fund supported by the government of Finland with the objective of catalyzing greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, with a focus on poor and vulnerable countries and communities, gender equality, diversity, inclusion, and biodiversity.