34990 - Kandeo Fund II L.P

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

34990

Company Name

KANDEO FUND II (B) LP

Date SPI Disclosed

May 2, 2014

Country

Colombia

Region

Latin America and the Caribbean

Projected Board Date

Jun 6, 2014

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

May 24, 2021

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Jun 9, 2014
Signed : Oct 29, 2014
Invested : Dec 4, 2014

Sector

Private Equity/Venture Cap Fund - Regional

Project Description

The project entails an IFC equity investment of up to $20 million in Kandeo Fund II (“Kandeo II” or the “Fund”), a private equity fund focusing on high-growth Small and Medium Enterprises and Mid-caps operating in Colombia, Peru and Mexico (the “Countries”). The Fund will target business opportunities in financial services companies servicing Micro, Small and Medium Enterprises and individuals in the Bottom of the Pyramid.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

Development Impact

The Fund is expected to have strong development impact as it will invest in high-growth companies which are looking to replicate their successful business models within the Countries, therefore having a relevant impact in job creation and so contributing to economic development. In addition, the focus of the Fund on companies that offer financial services to the lowest socioeconomic segments of the population will propel financial inclusion in the Countries.

IFC's leading support for Kandeo Fund II would consider: (i) a catalytic role: IFC's commitment at time of first closing will act as a stamp of approval and help mobilize additional capital from international investors. This will help the Fund achieve its first closing and reach its target size; (ii) Fund structuring and governance: IFC will help the Fund adopt international best practice fund structure and legal terms. IFC's presence will further ensure that ESG best practices are adhered to at the Fund and investee company level; (iii) Regional support: As the only prospective investor with multiple offices across the region, IFC can add value to the Fund through IFC's participation at the Advisory Committee and by helping to establish relationships across the region. In addition, IFC is able to provide additional equity and debt financing to the Fund's investee companies through co-investments.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
Employment: New Jobs in Fund Investees (#)	Cumulative New Jobs (#)	Not Available	Not Available	Not Available
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement	Not Available	Not Available	Not Available
Emerging Fund Managers (Y/N)	Emerging Fund Mangers (Y/N)	Not Available	Not Available	Not Available
Direct Employment (#) - Operations and Maintenance	Employment (#)	Not Available	Not Available	Not Available
Female Direct Employment (#) - Operations and Maintenance	Female Employment (#)	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The projects supported by the fund are expected to have moderate environmental and social risks (: financial services, microfinance, housing, insurance), 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 applicable 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, 2021.

Investee	Country of Investment	Sector
Acceso Crediticio	Peru	Microfinance and Small Business - Non Commercial Banking
Conix	Colombia	Leasing Services
Exitus Capital	Mexico	Other Non-banking Financial Institutions
Finsocial	Colombia	Other Non-banking Financial Institutions
Inversiones Tropi	Colombia	Distribution Business
Progresemos	Mexico	Microfinance and Small Business - Non Commercial Banking
USIL	Peru	Colleges, Universities, and Professional Schools

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 financial services and microfinance operations in Colombia, Peru and Mexico. The expected pipeline entails mainly activities that could haveoccupational health and safety risks, air and effluent emissions and labor conditions.Additional environmental and social risks and impacts of the project derive from the capacity and systems in place to manage these risks.
The Fund does not yet have an ESMS and designated E&S staff and will need to develop appropriate capacity to undertake ESDD.

S.no	Title	Anticipated Completion Date	Status
1	Nominate officers	04/25/2014	Completed
2	Establish SEMS	04/25/2014	Completed
3	Formalize procedures	04/25/2014	Completed
6	Staff Training	04/25/2014	Completed

Contacts

For Inquiries About the Project, Contact

Mr. Eduardo Michelsen Delgado
CEO
Kandeo Investment Advisors
mailto:emichelsen@kandeofund.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster

Local Access of Project Documentation

As required by IFC or local laws.

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.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

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.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Private Equity Funds Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer