ImpactAlpha, November 6 – Pomona Impact Management has made 28 investments since 2011 to support small businesses in Central America. It stretched a $2 million pilot fund across 20 deals. The Guatemala-based impact fund manager is targeting $30 million for its second fund and expanding into Colombia and Ecuador, with a greater emphasis on women. The US International Development Finance Corp. and International Finance Corp., both existing backers, each committed $7.5 million.
The two development finance organizations have “proven crucial to reach our fundraising target in a challenging environment,” Pomona said.
Capria and IDB Invest backed the fund’s $10 million first close in 2021.
Climate + gender
Early deals in Pomona’s second fund include Mexican neobank Vexi, which supports financial inclusion for the un- and underbanked, and Tunart, a Guatemalan fish processing company that works with more than 200 independent fishers.
Pomona is increasing its focus on climate-related sectors like agriculture, renewable energy and water. Part of the IFC’s investment in Pomona is tied to the Women Entrepreneurs Finance Initiative, or We-Fi, a DFI-led initiative to help female entrepreneurs start and grow businesses.
Separately, the DFC announced a collaboration with IDB Invest, part of the Inter-American Development Bank, to finance critical infrastructure projects in Latin America and the Caribbean. The partners earlier supported Ecuador’s debt-for-nature swap to protect the Galapagos Islands.
The DFC and IDB Invest say they have $3 billion in projects lined up.