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CoreCo Central America I LP

United States of America

Last updated 13 May 2020, by Impactyield.

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CoreCo’s targeted $65M Central America Fund I (CAFI) is focused on private equity investments in high-growth, regional SME companies throughout Central America (Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama). Central America, with a population of +42M and a quickly growing, consumer-oriented middle class, represents a significant, underserved private equity market with increasing demand for new sources of growth capital.

CoreCo’s approach is to focus on the underserved, domestic demand driven sectors to identify and invest in the high-growth companies that are leading the regional expansion in their industries. CoreCo believes that these are the companies that will lead development in the region, will attract the greatest attention from investors and clients alike and will be the most likely candidates to find a successful exit and drive significant value creation for stakeholders.

CoreCo expects to make 8-10 portfolio investments in SME companies that either are already regional businesses or possess the ability to become regional businesses with the infusion of a growth capital investment by CoreCo. Companies that CoreCo invests in are market leaders in their respective sectors (Healthcare, IT, Business Services, Financial Services, Telecom, Retail, Consumer Goods and Logistics), operate proven businesses with an orientation around high-growth, recurring revenue models, are at or near cash flow breakeven, and have clear exit opportunities.



Financial description

CoreCo seeks to make preferred equity and convertible debt investments in private companies.

12 years

of track record

2012

the year funded

65,000,000 USD

AUM

Interested in this fund?
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Gain a deeper and comprehensive understanding of how this fund generates positive impact in the themes and SDGs that matter to you, with insights provided by our dedicated team of expert analysts, and receive notifications about new available impact products, exciting investment opportunities, and relevant updates in the world of impact investing.

Asset manager

SDG goals

SDG targets

Substantially reduce waste generation

Encourage companies to adopt sustainable practices and sustainability reporting

Increase financial resources to conserve and sustainably use ecosystem and biodiversity

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Increase access to financial services and markets

Key performance indicators

Fund overview

Asset manager: CoreCo Holding

Product track record: Fund has 12 years of track record

Target IRR: 25%

Committed Capital: 53,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: , ,

Inception year: 2012

Vintage year: 2012

Target region: , , ,

Target close date: 01/06/2013

Product term: 10 years +2x 1-yr ext

Assets under management: 65,000,000 USD (US Dollar)

Investment size: Min: 2,000,000; Max: 6,000,000; Avg: 4,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 2

Fund investments to date exited or repaid: 0

Management fee: 2%

Carried interest: 20%

Hurdle rate: 8%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: IFC (International Finance Corporation) DEG (Germany) Norfund (Norway) FOMIN/IADB (Inter-American Development Bank) BIO (Belgium) OBVIAM (Switzerland) Private institutions HNWIs

Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail:  daniel.grew@corecoholding.com

Website: http://www.corecoholding.com

Phone number: +1 305 503-3044

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Alex von der Goltz

Co-Founding and General Partner

William Muecke

General Partner

Impact Performance

n.a.

Impact thesis

CoreCo Central America Fund I targets investments in domestic demand driven high growth sectors of unmet need.
Areas of focus for the Fund include improving access to cost-effective and efficacious health care, increasing the availability of access to consumer financial services, improving the development of local commerce in domestic consumer goods and retail products, promoting efficiencies in transport and logistics, and driving sustainable environmental outcomes, such as lowered carbon usage, through supporting the growth of greater use of post-consumer recycled goods and materials in the industrial supply chain.
In addition to these macro themes, we promote specific KPIs in our portfolio companies that promote local job development, social community building, greater diversity in the workforce, improvements in gender equality, improvements in domestic economic impact, and improvements in environmental sustainability practices.
By doing so and by focusing on driving world-class corporate governance practices in our businesses we believe we can create a significant positive impact in the social, environmental and economic development of Central America. We follow the DOTS development impact indicators from the IFC/World Bank as well as other DFIs who are investors in the Fund.

Impact Management

n.a.

Financial benchmark