ALAOF IV: A fund for midcaps in Latin America

ACON Latin America Opportunities Fund IV (ALAOF IV) is ACON Group’s 4th investment fund dedicated to Latin America. Building on over twenty years’ experience in Latin American investment, ACON has invested over USD 1bn in the region (including in the form of co-investment), via its investments in 29 companies in 10 countries. These investments focus on distribution, consumer goods, health, financial services, energy and infrastructure. ACON has offices in Mexico City, São Paulo, Bogota and Washington.

Proparco invested in the ALAOF IV fund at its third closing. It is Proparco’s second equity investment in a Latin American fund managed by ACON. The ALAOF IV fund targets midcaps in large variety of business sectors, the main ones being distribution, consumer goods, health, financial services, energy and infrastructure. The fund makes both equity and quasi-equity investments.

This operation will contribute to private sector development in essential sectors for sustainable development in Latin America, where capital provision still remains limited. The investments targeted by the fund should maintain or create some 3,000 indirect jobs. In addition, the involvement of ACON’s management teams in the governance of the companies in their portfolios will contribute to improving their management practices, and to disseminating demanding criteria in terms of environmental and social responsibility.