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| Ignia Fund I, LP |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27669 |
| Company name | Ignia Fund I, LP |
| Country | Latin America Region |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Pending Signing |
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| Date SPI disclosed | May 14, 2009 |
| Projected board date | June 15, 2009 |
| Previous Events | Approved: October 22, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| IGNIA Fund I, LP (Fund) is a closed-end private equity fund that will make equity investments in small and medium-sized enterprises (SMEs) that serves the Base of the Pyramid (BoP) in Latin America. The Fund will be managed by Promotora IGNIA, S.C. (IGNIA or the Manager) and will primarily focus on companies in healthcare, housing, education, nutrition, and basic utilities. |
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| Project sponsor and major shareholders of project company |
| IGNIA, founded in 2007 by Messrs. Alvaro Rodriguez and Michael Chu, is an independent private equity firm focused on investments in Mexico and Latin America. The team has a long-term experience in BoP, investing and executive management. |
| Total project cost and amount and nature of IFC's investment |
| It is proposed that IFC will invest $10 million in the Fund. |
| Location of project and description of site |
| The Fund is a partnership established in Quebec, Canada, and has a management team in Monterrey, Mexico. |
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| Anticipated development impact of the project |
- Private sector development: The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.
- Implementation of best practice for corporate governance in portfolio companies: The Fund will adopt international best practices for corporate governance and management, as well as transparency, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.
- Support for SMEs: The Fund is expected to invest predominantly in SMEs.
- Proof of concept: The Fund is expected to demonstrate proof of concept and roll out other similar funds targeting the base of the pyramid in Latin America and other emerging markets. |
| IFC's expected development contribution |
- Catalyze other funding from institutional and private capital: IFC’s participation will provide comfort to other investors and broaden the Fund’s investor base.
- Support an emerging fund manager: IFC will support the development of the local private equity industry by supporting a first-time fund manager.
- Governance of the Fund: IFC will seek to play a governance role through participation on the Fund’s governing structures. |
| Environmental and social issues - Category FI |
| This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC analyzed the fund’s expected portfolio and sectors of investment and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the expected investments. The Applicable Performance Requirements are (i) The IFC FI Exclusion List, (ii) The applicable National Social and Environmental Laws and regulations, and (iii) The IFC Performance Standards. IFC will also review, the capacity of the fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required. The Fund Manager will be required to: (i) Develop and, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC (ii) Identify responsible, qualified persons to manage and implement the SEMS (iii) Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements (iv) Take action to remedy any gaps in SEMS implementation on an ongoing basis (v) Submit a periodic report to IFC as per a format to be provided by IFC. Once in portfolio, IFC will have the rights to review the first few deals prior to the Fund's investment decisions to ensure that the Fund's SEMS is performing adequately to address the social and environmental risks associated with the Fund's investment activities. |
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| For inquiries about the project, contact: |
Alvaro Rodriguez Arregui
Managing Partner, IGNIA Partners, LLC
Av. Ricardo Margain 575, Parque Corp. Santa Engracia
San Pedro Garza Garcia, N.L. Mex. C.P. 66267
Phone: +52 81 8000 7168
Fax: +52 81 8000 7165 |
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| 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 |
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