(Press Release) On November 30, 2012, Adobe Capital launched its first impact investment fund focused on supporting high-growth social and environmental SMEs in Mexico. Under the name of Adobe Social Mezzanine Fund I, LP, the fund commenced operations with US$15 million in committed capital from nine institutional investors, including international development banks, local and international foundations, family offices, multilateral agencies, and funds-of-funds.
The fund represents an innovative and attractive alternative for its investors as it seeks to solve pressing social and environmental problems by providing flexible financing to profitable high-impact businesses at attractive returns. This is the first fund in Mexico offering mezzanine investment structures that provide tailored financing alternatives which combine equity and debt features in order to maximize the future success of portfolio companies.
The fund expects to invest between US$100,000 and US$3 million in a total of 10 to 15 companies in the coming years, thus helping fill a current void in the Mexican financing market whereby high-impact SMEs are unable to access traditional bank financing and are usually too small for local private equity funds.
In order to further support these companies, Adobe Capital has joined forced with New Ventures Mexico (NVM), the leading social and environmental businesses accelerator in the country. As part of this strategic relationship, the fund will have access to New Ventures Mexico’s extensive pipeline of high-impact, scalable companies, broad-reaching local and international network, and important events such as the Latin American Impact Investing Forum (LAIIF).
In line with its mandate, Adobe Capital completed its first portfolio investment in FINAE during January 2013. FINAE is the leading provider of post-secondary student loans for low- and middle-income students in Mexico. With this investment, FINAE will be able to expand its current loan portfolio and prepare it for the issuance of the country’s first public market educational bond.