Company name

Investee: Abraaj Latin America Fund II, L.P.

Project number

RA2849A-01

FI-2 operations are those where the risk potential is considered medium: the FI’s current or future portfolio consists of or is expected to consist of, business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.

E&S category
tooltip

FI-2

Country

Regional

Sector

Investment Funds

Status

Hold

Disclosed date

05/19/2015

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
tooltip

06/23/2015

Approval date

06/23/2015

Signed date

N/A

Sponsoring entity

Abraaj Group

Team leader

Lucas de Beaufort

Investment type

Syndicated amount

N/A

Financing amount

USD $ 3,000,000

Currency

USD

Project scope and objective

ALAF II (the “Fund”) is a multi-sector fund that will invest growth capital in middle market businesses in Latin America. The Fund is the Abraaj’s Group (“Abraaj” or the “Group”) first Latin America Fund. The Fund has a regional approach focused on Mexico, Colombia, Peru, and Chile, to take advantage of the regional integration occurring through the Pacific Alliance. Opportunistically, the Fund may invest in other countries in South America and Central America (primarily Costa Rica and Panama). The regional integration, together with Abraaj’s team value-added will contribute to the creation and improvement of the phenomenon of Latin American multinational corporations, better known as multilatinas.
Abraaj is a leading fund manager focused on emerging markets across the world, and most recently Latin America. Abraaj currently manages US$9 billion, encompassing investments in ten broad sectors and 50 countries. To date, the Group has made over 165 investments and has achieved over 70 exits in multiple differing economic environments.

The Fund will invest in middle market businesses in sectors that are related to macro-trends like growing urban centers, and regionalization with focus primarily on companies whose growth is driven by private consumption and domestic demand.
The IIC’s participation in the Fund, for up to US$3 million, is expected to play an important role in furthering the engagement of the Abraaj Group with the IDB Group and with the Latin American and Caribbean region. This would give the Fund access to: technical assistance programs, key sector regional experience and network, potential additional sources of financing for co-investments or follow-on investments in the Fund’s portfolio companies, and access to best practices in corporate governance and environmental and social standards. The success of the regional integration of the portfolio companies of the Fund will create employment opportunities and develop further business links in the Pacific Alliance.

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ESRS ABRAAJ 2015

127.3 Kb

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.

Contact information

For inquiries, comments and information requests about the project

Request information

Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

N/A

POSITION

N/A

PHONE NUMBER

N/A

EMAIL

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices

For inquiries, comments and information requests about the project

Request information

Learn more about how we provide private-sector solutions in the region.