Aug 2, 2012
MIF Invests in Mexican Venture Capital Fund to Support Education, Financial and Retail Services
$5 million impact investment in Mexico Development Fund I
The Multilateral Investment Fund (MIF) approved a $5 million equity investment in Mexico Development Fund I (MDF-I), a venture capital fund that will provide financing, as well as strategic and operational advice to small and medium-sized companies in Mexico. The Fund will be operated by PC Capital Partners, a Mexican firm with extensive experience in financing, management consulting and private equity.
MDF-I will focus on companies that provide education, financial and retail services, or produce eco-friendly products targeted at a growing and young local middle class. These companies should have a proven business concept, requiring capital to expand operations or develop new markets and products.
The investments made by MDF-I are expected to have economic and social benefits in terms of fostering entrepreneurship, creating direct and indirect employment, promoting sustainable business models and expanding education opportunities to broader populations.
“The Fund presents a compelling impact investment case that will benefit Mexico’s young and growing low-income population that is now transitioning into the middle class,’’ said Susana García-Robles, Principal Specialist and team leader of the operation at the MIF. “This segment of the population is fueling demand for secondary, technical and professional training as well as to services and energy sources that are environmentally friendly and financial and retail services tailored to their needs.”
MIF investment in the Fund will play a catalytic role in supporting the development of the local venture capital industry, building local management capabilities, demonstrating the financial viability of these vehicles, and mobilizing critical investors and stakeholders.
About the MIF
The MIF, a member of the Inter-American Development Bank Group, plays a leading role in the development of conducive ecosystems to finance entrepreneurship, and is an active investor in seed and venture capital funds in Latin America and the Caribbean. Established in 1993, the Multilateral Investment Fund develops effective approaches to support economic growth and poverty reduction through private sector-led development in support of micro, small and medium-sized enterprises, benefitting the poor—their businesses, their farms, and their households.