Summary of Anticipated Development Impacts
CLIMATE AND NATURE ACTION
- Protecting nature and biodiversity in Latin America: EcoE IV will invest in businesses that contribute to biodiversity and natural ecosystems through sectors such as regenerative agriculture, agroforestry, ag‑tech solutions, sustainable aquaculture, and ecotourism. This is particularly important in Latin America and the Caribbean which, despite being one the world’s most biologically rich regions with nearly 40% of the planet’s biodiversity, has experienced an alarming 95% decline in wildlife populations since 1970.1
- Investing in low‑carbon sectors: The Fund, committed to promoting a low‑carbon economy, is expected to make investments in renewable energy, circular economy, and alternative proteins. EcoE IV seeks to have a carbon neutral portfolio by 2030.
GENDER EQUALITY:
- Women‑owned and led fund: Globally, women fund‑managers receive an estimated 2 to 3% of capital flow, and in Latin America and the Caribbean, only 8% of senior investment professionals in Fund Management teams are women2, 3. This transaction supports a women‑owned and women‑led fund, which further promotes investment towards women entrepreneurs and gender‑responsive businesses. This is enabled by its gender‑lens investing strategy, which equips the Fund to consider gender equality opportunities throughout the lifecycle of its investment activities.
- Investing in and supporting gender inclusion: As a gender‑lens investor and a 2X aligned fund, EcoEnterprises IV is committed for 50% or more of its portfolio to meet the 2X Criteria by the end of the fund’s life. The Fund Manager also intends to support all portfolio companies with the implementation of tailored gender inclusion measures and action plans.
MARKET DEVELOPMENT
- Investing in local businesses: EcoEnterprises IV seeks to invest in local SMEs and growth‑stage businesses. They are an important local economic driver as MSMEs comprise 90–99.5% of firms in Latin America and the Caribbean (LAC) and generate 60% of formal productive employment.
- Supporting local and rural jobs: The Fund is expected to invest in sectors such as sustainable agriculture and forestry, aquaculture, and ecotourism. These sectors are locally driven and can bring meaningful economic benefits for local communities. For example, through 12 portfolio companies, Fund III currently supports 3,000 jobs and 4,700 local suppliers across eight Latin American countries and 570 communities, including rural and Indigenous communities