Alta Growth is sponsored by vSpring Capital, an early-stage venture capital firm located in Salt Lake City, Utah. The vSpring Capital team currently comprises 15 investment professionals most of whom are bilingual. vSpring Capital generally invests in U.S. companies located mainly in Utah, Colorado, New Mexico, Arizona, Nevada, and Idaho.

The fund manager of the Fund will be Alta Growth Capital Management Mexico (GP), L.L.C. (the Fund Manager), a Delaware limited liability company. The Fund Manager’s principals are Erik Carlberg, Scott McDonough and Rafael Payro who are located in Mexico City. An entity affiliated with vSpring Capital will also serve as a member of the Fund Manager.

The Fund is targeting $150 million in equity investments. IFC is proposing to invest up to $15 million in equity in the first closing. Additional $5 million may be invested in subsequent closings based on fund-raising progress.

20.0 million (USD)

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

* These investment figures are indicative

Alta Growth will invest in mid-size companies located in Mexico. The Fund may invest up to 20% of its capital commitments in Central America, where the investment opportunity involves a Mexican business.

The Fund will contribute to the economic development of Mexico by supporting 8-10 medium size companies. Shrinking bank financing has left middle-market companies with few funding alternatives. The Fund is well positioned in Mexico to invest in good mid-size companies that need a strong partner to help them develop and succeed in an increasingly competitive global marketplace. The experience of the Alta Growth team in private equity investment, financial restructuring and corporate governance will be important components of these companies’ growth and development. The Fund Manager will adhere to local and the World Bank Group’s environmental standards.

IFC is supporting an emerging fund manager that has good probability of success based on IFC funds experience. IFC’s early investment in Alta Growth is expected to send a strong signal of support to institutional investors. Institutional investors remain cautious about investments in funds targeting small and medium size enterprises in Latin America. IFC’s investment will allow the Fund to achieve a size that corresponds to its strategy of making control investments.

IFC’s development impact will be measured by:

- The evidence of improved revenue and profitability of portfolio companies;
- The Fund’s ability to generate employment and/or growth in labor productivity;
- The Fund Manager’s ability to raise a successor fund.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the fund’s expected portfolio and sectors of investment and determined the Applicable Requirements based on an analysis of the potential social and environmental risks associated with the expected portfolio and considering IFC’s investment. The Applicable Requirements are:

- The IFC FI Exclusion List.
- The applicable National Social and Environmental Laws and regulations.
- The IFC Performance Standards.

IFC also reviewed the fund’s existing Social & Environmental Management System (SEMS), and capacity to implement the same. It was found that the Fund has a satisfactory SEMS and sufficient capacity to implement the same.

Based on the Applicable Requirements and fund SEMS and capacity review, the project will be required to:

- commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements;
- commit to take action to remedy any gaps in SEMS implementation on an ongoing basis; and
- submit a periodic report to IFC as per a format to be provided by IFC.