Proparco invests USD 25M in GEF Latam Climate Solutions Fund III
published on 25 May 2022
Proparco has committed USD 25 million in a first closing of USD 96 million alongside the EIB and private investors. This is Proparco's second investment with GEF, a global asset manager, specialized in the sector of resource efficiency, following the 2019 investment in Sowth Asia Growth Fund II (SAGF II), GEF's program in South Asia.
GEF is a global private equity player dedicated to investing in the United States, South Asia and Latin America in medium and intermediate-sized companies generating climate co-benefits and/or resource efficiency.
This is GEF's third vehicle dedicated to Latin America, which aims to invest tickets of €10-20 million in mainly Brazilian SMEs and ETIs that generate climate co-benefits or promote resource efficiency solutions, in three key sectors with high climate potential (Clean energy, Food & Agribusiness and Urban Solutions). On the economic and social level, the fund would support the creation or maintenance of nearly 2,800 direct and indirect jobs in Brazil.
“By participating in the first closing of GEF Latam Climate Solutions Fund III, Proparco intends to play a catalytic role in mobilizing private finance and direct it towards an investment program in line with AFD Group's objectives, particularly on climate finance” said Philippe Serres, Regional Director for Latin America.
“This commitment is also aligned with Proparco’s objective to build long term partnerships with performing asset managers who contribute to mainstreaming innovative climate mitigation and attenuation initiatives in the private sector,” said Augustin Guéret, Senior Investment Officer at Proparco.
