42967 - L CATTERTON LATIN AMERICA III, LP

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Summary of Investment Information

Project Number

42967

Company Name

L CATTERTON LATIN AMERICA III, LP

Date SPI Disclosed

Nov 18, 2019

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Dec 18, 2019

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Jan 19, 2024

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Dec 18, 2019
Signed : Mar 16, 2020
Invested : Sep 16, 2020

Sector

Growth Equity Fund

Additional Project Attributes

Blended Finance

Project Description

IFC proposes an equity investment of up to US$20 million in L Catterton Latin America III L.P. The Fund is seeking commitments to pursue growth capital investments in mid-cap consumer companies in Latin America.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	35.0

Development Impact

E&S Category Rationale / Risks and Mitigation

The Fund will invest in a diversified portfolio in Brazil, Mexico, Andean region and Argentina, seeking to deploy capital across its target markets and in sectors including food and beverage, consumer brands, retail and restaurants, and consumer and marketing services. The Environmental and Social (E&S) risks are considered medium and mainly entail limited adverse E&S risk and impacts that are few in number, generally site-specific, largely reversible and readily addressed though appropriate mitigation measures. Therefore, this project has been classified as Category FI-2 according to IFC's Environmental and Social Review Procedure. The Fund is not expected to invest in activities of high E&S risks, although these are not formally excluded. Coal-related activities are not eligible under this project. The Fund Manager will be required to assess and monitor all investments against the IFC Exclusion List, Applicable national laws and regulations and the IFC 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
Despegar	Virgin Islands, British	U-AC - Travel Agency
Ben and Frank	Mexico	Q-BE- Fashion Retail (Apparel, Footwear, Sport)
CI Cantu Store	Brazil	P-BA- Growth Equity Fund
Crediclub	Mexico	O-AC- Commercial Banking - Microfinance
NotCo	Chile	F-AI- Other Food
Odontoprev	Brazil	S-AC- Other Health Services
Petlove	Brazil	X-XY- Other
Valoreo	Mexico	O-ME- Online payments, ecommerce payments

Potential environmental and social risks and impacts derive from the Fund's capacity to identify and manage the environmental and social risks associated with investment activities. These are principally related to the (i) environmental risks such as air emissions and air quality, waste management, hazardous material management, as well as occupational health and safety issues such as workers’ exposure to chemical substances and particulate matter, noise, biological and physical hazards; (ii) employment practices as described in PS2; (iii) supply chain E&S risks for consumer-driven sectors; (iv) E&S management practices and; (v) community issues such as life and fire safety, security of premises and emergency preparedness and response. As part of IFC's investment, LCLA III will enhance its existing E&S policies and associated environmental and social management system (ESMS), which shall be consistent with IFC's Performance Standards. Responsibility for the implementation of the ESMS shall lie with a Managing Director and will be integrated into the Fund's investment cycle. As part of IFC's investment, and through the implementation of the ESMS, the Fund shall (i) review all investee companies per the E&S laws and regulations of the target country and the IFC Performance Standards.; (ii) Conduct an E&S due diligence (ESDD) to identify potential E&S risks of each investee company and require corrective actions as needed; (iii) implement a monitoring program, based on continuous improvement principles, to supervise the E&S performance of each investee company and report to IFC; (iv) whilst no Category A investments are expected, if any occurs, IFC will review the ESDD prior to the Fund's investment in that company, in addition to the first three ESDDs conducted for any sub-project of the Fund; and (v) submit an annual E&S report to IFC.

S.no	Title	Anticipated Completion Date	Status
1	Nominate officers	12/29/2019	Completed
2	Establish SEMS	12/29/2019	Completed
6	Staff Training	12/29/2019	Completed

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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.

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