47674 - L Catterton IV

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Summary of Investment Information

Project Number

47674

Company Name

L CATTERTON LATIN AMERICA IV, L.P.

Date SPI Disclosed

Feb 17, 2023

Country

Latin America and the Caribbean Region

Region

Latin America and the Caribbean

Projected Board Date

Mar 31, 2023

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Apr 6, 2025

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Apr 7, 2023
Signed : Aug 10, 2023
Invested : Apr 4, 2025

Sector

Growth Equity Fund

Project Description

The proposed transaction is an equity investment of up to US$60 million, up to 20 percent of the Fund’s total commitments, and US$30 million available as a co-investment envelope in L Catterton Latin America Fund IV, L.P. (Fund IV or the Fund), a growth equity fund targeting US$700 million in commitments to make mid-market investments in consumer-focused companies in Latin America.

The Fund will make 9-11 investments, providing equity tickets between US$45-75 million through significant minority and select control investments. The strategy is consumer-focused with a thematic top-down investment approach to selecting sub-sectors geared towards generating returns through all cycles. The Fund will target leading consumer companies within specialty retail, services, food & beverage, healthcare, and education sub-sectors.

Associated Advisory Engagement

There are no advisory services associated with this engagement.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	90.0

Development Impact

IFC will provide both financial and non-financial additionality. IFC will support the fund with own-account equity both directly and via a co-investment envelope. IFC will play an active role as a trusted reference to provide comfort to other potential investors. IFC will also support LCLA to integrate gender-lens investing into its mainstream fund and implement E&S best practices.

E&S Category Rationale / Risks and Mitigation

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. High E&S risks or coal-related activities will not eligible under this project. L Catterton will be required to maintain its ESMS to screen potential investments in line with the IFC Exclusion List, LAC countries laws and the IFC Performance Standard when applicable.

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
WeVets	Brazil	S-AC- Other Health Services

Potential environmental and social risks and impacts derive from the Fund's capacity to identify and manage the environmental and social risks associated to potential investments mainly related to (i) environmental risks related to 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. L Catterton developed and implemented an ESMS that includes policy, procedures, responsibilities and tools for undertaking E&S risk management in addition to training relevant staff. E&S due diligences are performed mostly by the fund team with support of a knowledgeable local legal consultants prior to investment closing, including E&S related themes. All potential investments are screened through legal due diligence. For potential investees with E&S legal gaps, a corrective action plan is designed, included in legal documentation and monitored constantly. The Fund Manager will be required to (i) maintain its ESMS to screen the potential investments in line with the IFC Exclusion List, LAC countries Laws and regulation, as well as the IFC Performance Standards, when applicable, (ii) submit first three E&S Due Diligences conducted prior to investment, as well as (iii) report annually to IFC . L Catterton will inform IFC in the event of any material change in the nature or scope of its portfolio activities

Contacts

For Inquiries About the Project, Contact

L Catterton
Dirk Donath
Managing Partner
-
info@lcatterton.com
-
www.lcatterton.com

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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.

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Online form: available at https://www.cao-ombudsman.org/
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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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