IDB Invest is considering a US$10 million equity investment in the SEAF Caribbean SME Growth Fund (“the Fund”), an impact investment fund providing growth capital to Small and Medium Enterprises (“SMEs”) in the English-speaking countries of the Caribbean Common Market (“CARICOM”). In addition, IDB Invest in its capacity as administrator of the Canadian Climate Fund for the Private Sector in the Americas – Phase II (C2F) will provide a loan of up to ten million dollars (US$10,000,000) to a SEAF controlled SPV to on-lend to the Fund’s portfolio companies to finance climate resiliency and climate mitigation projects.
The COVID-19 crisis has further reduced much needed investment capital for the Caribbean countries, so the Fund is expected to have a significant impact in its focus region. With a target size of US$100 million, the Fund will invest in 8-12 SMEs, seeking market-based financial returns alongside measurable impact, particularly quality job growth and improved gender, governance, and environmental practices. The Fund had its first close of US$35 million in October 2019, fully funded by private sector investors.
The Fund is managed by SEAF Caribbean Management (“SEAF Caribbean”), a local subsidiary of Small Enterprise Assistance Funds (“SEAF”), a global impact investing group with a 30-year track record of supporting SMEs in emerging and transition markets.