Development organisations back Latin America fund.

by Mitul Patel

  • 29 Jun 2010
  • PE

A number of international development organisations have backed Ignia Fund I, a recently closed venture capital fund that invests in commercial enterprises serving low-income sectors in Latin America. In total, 34 investors have committed to the fund, with a number being private and government-backed development agencies and foundations. Such institutions have taken the opportunity to back the vehicle in supporting projects to improve areas of health, education and housing, amongst others, in Latin America. In doing so, LPs have taken the opportunity to show their support for the first private equity fund of its kind in Latin America. Such was the popularity of the opportunity amongst LPs, Ignia Partners had raised a total of USD 102 million in capital, above its initial target size of USD 75 million.

Individual investors in the fund include Mexico-based Corporación Mexicana de Inversiones de Capital, a fund of funds program established by the Mexican government, which committed USD 7.5 million. The Venezuelan government agency, Corporación Andina de Fomento (CAF), which aims to advance sustainable development specifically in South America was another Latin America-based corporation which committed to the fund.  Other similar organisations acting as LPs in the fund include a range of development banks and government agencies from the US, including Inter-American Development Bank, Multilateral Investment Fund and International Finance Corporation, all of which strive to support and enhance economic and social development. As well as these government-associated investors, private foundations have also found the opportunity to support this development project worthwhile, with Soros Economic Development Fund, established by inventor and philanthropist George Soros, and Rockefeller Foundation, established by John D. Rockefeller, also committing capital to the fund.

More information on institutional investors in private equity can be found on Preqin's Investor Intelligence database.

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