Proparco confirms its support for the private sector in Latin America

Brazil Colombia Mexico Multi-country Latin America and the Caribbean
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With a EUR 27m equity investment in the investment fund ACON ALAOF V, Proparco is pressing ahead with its strategy in Latin America: support growth in consumption related to the emergence of a middle class, support the private sector, which contributes to closing the infrastructure gap, and improve the penetration of financial services, which is still low.
Client presentation

The management company ACON was set up in 1996 to support SME financing in Latin America. PROPARCO has been a partner of ACON since 2010 with the ACON ALAOF fund, then ACON ALAOF IV in 2014. The team is based in the USA, Mexico City, Bogota and Sao Paulo.

Project description

ACON ALAOF V is expected to implement a strategy based on three guidelines. Firstly, support the growth in consumption related to the emergence of a middle class, but also support the private sector, which contributes to closing the infrastructure gap, and, finally, improve the penetration of financial services, which is still low. Sectors related to oil, gas and extractive industries are excluded from the fund’s investment policy.

Project impact
  • Support for the employment of some 7,350 people in the countries concerned (mainly Brazil, Mexico and Colombia), including some 3,700 women.  
  • Training in compliance for the fund’s employees (legal obligation) and training for employees in the underlying companies depending on the needs, with a focus on improving corporate governance practices, assessing environmental and social risks and defining investment strategies.
08/11/2019
Date of signature of the project
Brazil Colombia Mexico Multi-country Latin America and the Caribbean
Location
Financing tool
27 000 000 Euros
Amount of funding
USD 30m Equity investment
Financing details
ACON ALAOF V
Client
CES