32832 - MAS EQUITY FUND III, LP

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Summary of Investment Information

Project Number

32832

Company Name

MAS EQUITY FUND III, LP

Date SPI Disclosed

Jan 30, 2014

Country

Colombia

Region

Latin America and the Caribbean

Projected Board Date

May 16, 2014

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Feb 21, 2024

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : May 16, 2014
Signed : Jun 26, 2014
Invested : Aug 19, 2016

Sector

Growth Equity Fund

Project Description

MAS Equity Partners, a Colombian private equity fund manager, is raising a US$200 million fund (the “Fund”) for high-growth SMEs and mid-sized companies operating in Colombia that have regional expansion plans or Latin American companies with operational interest in Colombia. The Fund will target business opportunities in the following sectors: (a) consumer services ? health & wellness, hospitality, education and financial services; (b) infrastructure services ? oil, gas, and construction services, and (c) agribusiness/food industry. The Fund will be created as a limited partnership (“LP”) to be established in Cayman Islands. MAS Equity Partners LLC, the General Partner, is a limited liability company (“LLC”) based in Delaware. The Fund will be managed by a group of seasoned professional team organized under MAS Equity Partners Colombia, a subsidiary of the General Partner. The Fund will observe both local and environmental regulations and the World Bank Group’s performance standards.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

Development Impact

IFC's leading support for MAS Equity Partners, an emerging fund manager in the country, is important for the success of the Fund. IFC's equity investment and on-going support will help this emerging Fund Manager to: (i) Catalytic role: IFC's support has already helped this emerging fund manager to create awareness of this new independent fund manager and potentially mobilize additional capital (or strong expressions of interest) from international institutional investors; (ii) E&S and Governance: IFC will help the Fund update its E&S framework best practices and will ensure that ESG best practices are adhered to at the Fund and investee company levels; (iii) Co-investments: depending on the final close amount, the Fund may be relatively small in size and the potential pipeline companies are experiencing high growth. Additional capital will be needed to support growth. IFC's ability to provide additional equity as well as debt financing will allow the Fund to leverage its capital base; (iv) IFC Strategic Support: IFC will add strategic value to the Fund's team by participating actively on the Advisory Committee, and sector-based advise with IFC direct businesses.

E&S Category Rationale / Risks and Mitigation

MAS Equity Partners is as follow-on fund to the existing Fondo Transandino Colombia (“Fund I) and MAS Colombia-Latam Fund ("Fund II”), initially established by the Small Enterprise Assistance Funds (“SEAF”) and local Managing Partners. The Fund strategy will be to invest in mid-sized companies in Colombia in the following sectors consumer, infrastructure services, and food chain integration. While some of the sectors involved can have moderate environmental and social risks (“E&S”), given the Fund's investment strategy, the project has been categorized as FI-2 according to the IFC’s Sustainability Policy. For this project, the Fund will be required to assess the potential investments against the IFC Exclusion List, host country laws and the provisions of the 2012 Performance Standards.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2025.

Investee	Country Of Investment	Sector
Dekel	Panama	D-AA- Construction and Real Estate
ESSI	Colombia	M-DB- Industrial Machinery
Europa America Laboratorios	Peru	S-AA- Hospitals and Clinics
Pelpak	Colombia	L-AC- Other Plastic and Rubber Products

As a Private Equity Fund, the main risks are associated with the Fund’s investments, which will include investments between $ 10 to 25 million in consumer, food chain and infrastructure services in Colombia or international companies with a focus on Colombia. The expected pipeline entails mainly sectors that could potentially have low to moderate environmental and social risks, such as: occupational health and safety risks, supply chain risks, air and effluent emissions, to name a few depending on the investment. Additional environmental and social risks and impacts of the project derive from the capacity and systems in place to manage these risks. For Fondo Transandino I and II, the Fund applied SEAF environmental and social requirements which includes compliance with national and local social and environmental requirements (e.g., laws, regulations, certifications, permits, etc.). As a requirement of this investment, the Fund manager develop a management system prior to commitment.


Task Description	Anticipated Completion Date
Nominate E&S Officers/Department	On or prior to Commitment
Establish an ESMS including guidelines for its implementation	On or prior to Commitment
Implement Staff Training	Prior to First Disbursement

Contacts

For Inquiries About the Project, Contact

Mr. Hector Cateriano
Managing Partner, MAS Equity Partners
mailto:hcateriano@mas-equity.com

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Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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