The Fund, expected to be up to $12 million, is sponsored by the State Government of Guanajuato, which represents the first case of a local government-sponsored finance vehicle. The Government of Guanajuato is committed to providing up to $3 million and Nacional Financiera (NAFIN), a national financial institution of Mexico will invest up to $2.3 million, while other private sector investors are expected to contribute $0.8-2.7 million. The objective of the fund is to support the development in small businesses in the state of Guanajuato, particularly for addressing the equity financing needs for the growth of early-stage firms. The project pilots novel approaches to economic development, combining development objectives with the discipline of venture capital, thereby producing attractive returns while making a tangible impact on the local economy and further exploring the transferability of venture capital practices to regional development. The Fund will be managed by an investment management company constituted in Mexico, being its major partner the Chicago-based Shorebank Advisory Services, the first community development bank in the United States. During the first three years, the Shorebank will play a lead role but also will develop local staff and train the individuals, intending to transfer know-how of small venture development and managerial functions to its Mexican counterparts.
Project Detail
Country
Mexico
Project Number
TC9606346
Approval Date
April 21, 1999
Project Status
Closed
Project Type
Equity
Sector
-
Subsector
-
Lending Instrument
Instrumento del Fondo Multilateral de Inversiones
Lending Instrument Code
MIF
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
-
Total Cost
USD 12,000,000.00
Country Counterpart Financing
USD 8,000,000.00
Original Amount Approved
USD 4,000,000.00