Summary of Investment Information
Project Number
34031
Company Name
INDIGO 1 FICAP
Date SPI Disclosed
Oct 25, 2013
Country
Mexico
Region
Latin America and the Caribbean
Projected Board Date
Nov 25, 2013
Environmental Category
FI-2 - Limited
Status
Active
Last Updated Date
Dec 13, 2022
Department
Equity Portfolio Management
Industry
Financial Markets
Previous Events
Approved : Dec 18, 2013
Signed : May 16, 2014
Invested : Jul 7, 2014
Sector
Private Equity/Venture Cap Fund - Country
Project Description
Asesores Indigo S.A.P.I. de C.V. (“Capital Indigo”), a Mexican private equity (“PE”) Fund Manager, is raising a US$60-80 million growth private equity fund (“Capital Indigo Fund I”) for investments in local SMEs. The Fund was launched in late 2012 to invest equity or mezzanine debt in targeted Mexican SMEs and selectively in proven, strong entrepreneurs. Investment size will range from US$3-10 million, aiming to secure either a majority ownership interest or a mezzanine structure with warrants/equity kickers. The Fund will target investment opportunities driven by three long term trends: i) the growth of a young and emerging middle class; ii) the increase in demand of health-related products and services; and iii) sectors that benefit from a transformation into a greener and more sustainable world.
The Fund is an early mover in the SME private equity industry in Mexico, where there is low competition from financial institutions and private equity funds that typically seek to invest larger sums of capital per transaction. Target companies will have a clear competitive advantage locally and/or internationally due to manufacturing process, technology or business model and a clear potential to achieve a profitable exit within a two to six-year frame.
The Fund has been organized under the laws of Mexico as a private equity FICAP (Fideicomiso de Inversion en Capital Privado), a local trust used in raising private equity in Mexico. IFC is considering investing in the trust (which has catalyzed interest from other institutional investors). Capital Indigo is based in Mexico City. The Fund will observe both local and environmental regulations and the World Bank Group’s performance standards.
The Fund is an early mover in the SME private equity industry in Mexico, where there is low competition from financial institutions and private equity funds that typically seek to invest larger sums of capital per transaction. Target companies will have a clear competitive advantage locally and/or internationally due to manufacturing process, technology or business model and a clear potential to achieve a profitable exit within a two to six-year frame.
The Fund has been organized under the laws of Mexico as a private equity FICAP (Fideicomiso de Inversion en Capital Privado), a local trust used in raising private equity in Mexico. IFC is considering investing in the trust (which has catalyzed interest from other institutional investors). Capital Indigo is based in Mexico City. The Fund will observe both local and environmental regulations and the World Bank Group’s performance standards.
Sponsor / Cost / Location
Development Impact
E&S Category Rationale / Risks and Mitigation
Related Environmental Document
Contacts
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IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
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