Greetings Agents of Impact! 

⏱️ Happening today: Unlocking impact and climate alpha in Brazil. Join The Call to explore the growing impact investing ecosystem in Latin America’s largest market (see preview below), today at 10am PT / 1pm ET / 3pm Sao Paulo. Still time to RSVP.  

• Meet the players. “Brazil’s impact and climate investment ecosystem gets ready for COP30.” 

In today’s Brief:

• Mission-driven funders try to build a bridge – but to where? 
• Plastic recycling in Mexico
• Sustainable transportation in Europe
• Brazil in the hot seat

Featured: Chaos Theory

Mission-driven funders scramble to respond to Trump’s funding freeze. The Covid shutdown and the Silicon Valley Bank meltdown were practice missions for emergency relief. US President Donald Trump’s federal funding freeze could be The Big One – and perhaps too big for many mission-driven organizations. As confusion reigned Tuesday, philanthropic and impact-focused funders mobilized to build emergency bridges for social enterprises faced with cancelled programs, funding shortfalls and inevitable layoffs. A federal judge halted, at least until next week, parts of the Trump administration’s sweeping freeze just before it was set to take effect. A stop-work order for overseas projects funded by USAID had already threatened to disrupt refugee relief, AIDS treatment and anti-trafficking efforts, among many other projects, before being partially rolled back (for now).

• Continuity funding. “We exist to ‘unstick’ capital,” said Caroline Bressan of Open Road Alliance, a nonprofit that provides short-term bridge loans for social enterprises facing temporary shortfalls. “Capital is very certainly getting stuck and risking billions of dollars of foreign aid.” Bressan has been fielding inquiries from enterprises that were expecting USAID funding for restoring mangroves, working with smallholder farmers, and recycling waste in emerging markets. The nonprofit lender can only make loans to enterprises with a clear line of sight to repayment. To support the countless organizations not able to meet that benchmark, Bressan is organizing philanthropic funders to make zero-interest recoverable grants. “The enormity of the problem is a bit overwhelming,” she tells ImpactAlpha.

• Impoundment challenge. Federal funding appropriated by Congress had been considered safe from clawbacks under the Impoundment Control Act of 1974. An emboldened Trump administration has signaled it will challenge such restrictions. “Impound, Baby, Impound!” exhorted Mark Paoletta, Trump’s pick for general counsel for the Office of Management and Budget. Monday’s message from the OMB paused all activities that could run afoul of Trump’s executive orders, including “financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.” Awardees under the $27 billion Greenhouse Gas Reduction Fund received notices that the Environmental Protection Agency “has paused all funding actions related to the Inflation Reduction Act and the Infrastructure Investment and Jobs Act.” The future of the GGRF remains unclear: The EPA’s awards to coalitions of green banks and community lenders already are in deposit at Citi. The Coalition for Green Capital, Climate United and other groups have already announced commitments, including for energy retrofits and electric buses, electric drayage trucks and solar power for the University of Arkansas.

• Working capital. The temporary reprieve buys funders more time to organize their emergency response. P150, a global philanthropy collaborative, is building a database of grantees that might need funding support. Enduring Planet, a provider of working capital for climate tech companies, is inviting climate startups affected by the freeze to apply for up to $500,000. “We’re here for you!” wrote the firm’s Dimitry Gershenson. The funding crisis feels like deja vu for Bressan. During the pandemic, Open Road deployed some $11 million in bridge loans to 30 social enterprises whose operations were derailed by shutdowns. “It’s a real flashback,” she says. “Except instead of being something that is a public health emergency, it’s something that our government is doing that really didn’t need to happen.” 

• Keep reading, “Mission-driven funders scramble to respond to federal funding freeze,” by Amy Cortese and David Bank on ImpactAlpha. 

Dealflow: Circular Economy

Circulate Capital expands in Latin America with investment in Mexican recycling (exclusive). The Singapore-based impact investment firm took a stake in Omnigreen, a plastics recycling company based in Rio Blanco, Veracruz. The company is combating plastic pollution by collecting flexible plastics, like plastic bags, shrink wrap, bottles and food containers, that would otherwise end up in the trash. Omnigreen converts the waste into resins for use in new flexible plastic products, furniture and materials for construction and agriculture equipment. Omnigreen is aiming to recycle more than 300,000 tons of waste in the next 10 years and create at least 100 jobs.

• Circular blueprint. The deal gives Circulate Capital, a plastic-focused circular economy investor, a foothold in Mexico, the third market in the dedicated Latin America investment strategy it launched last year (see, “Circulate Capital brings growth capital to plastics recycling in Latin America”). In Asia, Circulate has since 2018 invested in opportunities to curb and remediate plastic pollution and to improve local livelihoods. A key part of its strategy is engaging and deploying capital from large corporate users of plastics, like PepsiCo, Unilever, Danone and Mondelez International. Circulate founder Rob Kaplan calls Latin America “a circular economy blueprint for the world.” The firm has raised $70 million for its dedicated Latin America fund (see, The Liist).
  
• PET projects. Circulate also made a second investment in Colombia, taking a stake in Ambiental de Plasticos Recyclapet, which produces recycled PET pellets for use in synthetic textiles and bottles. The company is buoyed by policy tailwinds: The Colombian government has mandated that 90% of water bottles and 60% of other beverage containers be made using recycled PET by 2040. Circulate last July invested in Colombia-based Polyrec – its first deal in Latin America. It also owns a stake in Brazil-based recycling company Cirklo.
  
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Shift4Good clinches $230 million for sustainable transportation in Europe and Southeast Asia. The transportation sector produces over eight billion tons of greenhouse gases, mainly from road transportation. Shift4Good, based in Paris and Singapore, launched in 2021 to invest in startups in Europe and Southeast Asia that are decarbonizing mobility. It raised €100 million ($107 million) in 2022 to back Series A and B rounds for more than 30 startups. As the global VC funding slump gives way, Shift4Good reached a final close of €220 million for its fund, shy of its €300 million target. Support came from corporations, institutional investors and family offices, including Capricorn, BNP Paribas and Bpifrance, Renault Group and the European Investment Fund. 

• Clean mobility. Under Article 9, the most stringent of the EU’s Sustainable Finance Disclosure Regulations, the fund plans to allocate two-thirds of its portfolio to Europe and the rest to Asia. It has invested in 13 companies, including Finnish e-bike leasing company Vapaus and Singapore-based electric ship producer Pyxis. “By connecting bold entrepreneurs with industry leaders, Shift4Good exemplifies the power of impact-driven investment to create meaningful solutions to the climate challenge,” said Renault Group’s Luc Julia.
  
• Check it out. 

Dealflow overflow. Investment news crossing our desks:

• Africa-focused renewable energy company Ignite Power acquired off-grid solar company ENGIE Energy Access with plans to expand its services to 14 African countries. (EIN Presswire)

• London-based LAIIER, which helps real estate developers remotely manage water issues, raised $4 million in a seed extension round led by Closed Loop Partners. LAIIER will expand to North America. (Closed Loop Partners)

• Family office Ceniarth led a $10 million investment in Deetken Impact’s Ilu Women’s Empowerment Fund, which was launched in 2016 to invest in women’s empowerment and climate resilience. (Deetken Impact)

• The Michael and Susan Dell Foundation and BLinC Invest led Bizloan’s 350 million-rupee ($4 million) Series A round to expand lending to India’s micro and small businesses. (YourStory)

• Miami-based On.Energy closed a $77.6 million construction credit agreement from Pathward and BridgePeak Energy Capital to expand its Palo de Agua battery storage site in Texas. (Pathward)

• UK-based GRYD Energy, which offers solar subscription services to households and developers, attracted £1 million ($1.2 million) in pre-seed funding from Black Seed VC and other investors. (TFN)

The Call: Impact in Latin America

Brazil’s impact and climate investment ecosystem gets ready for COP30. Latin America’s largest country is in the climate hot seat this year. The Amazon city of Belém will host the COP30 climate summit in November just as the US is set to exit from the Paris climate accord. Brazil is seizing leadership not only on climate, but in impact investing more broadly, with its National Impact Economy Strategy, or Enimpacto. “We’re in a very exciting moment,” says Giselle Vianna, who coordinates the strategy at the Ministry of Development, Industry and Foreign Commerce. The impact strategy, launched in 2017, aims to boost impact investing in the country from $11 billion to $120 billion over 10 years with blended finance, investment incentives and inclusive procurement. “It has crossed many different governments from different ideologies, so it’s resilient.” Vianna tells ImpactAlpha. A signal: The small state of Rio Grande do Norte in northeast Brazil has emerged as the early leader in implementing local impact economy laws. Nine other states, including Ceará, Espírito Santo and Rio de Janeiro, are following suit. Enimpacto is launching a national database of impact companies to attract private investment. Says Vianna, “This is the moment that we want to consolidate this expansion.”

• From ESG to impact. “We have to be very creative about where we look for solutions,” adds Fabio Alperowitch of Fama Re.Capital, a São Paulo-based impact asset manager that has managed an ESG equities fund for 30 years. In 2023, Fama launched the LatAm Climate Turnaround Fund to push high-emitting companies to decarbonize. The separate Fama Gaia Socio-Bioeconomy Fund makes affordable loans to small regenerative agriculture businesses and cooperatives. Fama is set to launch a gender equality fund to lend to women entrepreneurs. To mainstream impact “we need to offer funds with market-rate returns,” says Alperowitch. “My intention is to change the whole system, so we can compete against traditional products by offering comparable returns.” Of note: The climate turnaround fund is finding more traction with limited partners in the Middle East and Asia than in the US and Europe.

• Family affair. Brazilian families are “motivated by the impact,” says Wright Capital’s Fernanda Camargo, who manages the wealth of more than 40 Brazilian families. She has created three in-house fund of funds, each roughly $30 to $40 million, to cut the transaction costs of investing in smaller funds. Wright is standing up another fund to focus on nature-based solutions, regenerative agriculture and climate tech. “We have an infinite amount of opportunities in the bioeconomy,” Camargo tells ImpactAlpha. Camargo’s clients have invested with Brazilian impact fund managers, including Vox Capital, MOV Investimentos, Positive Ventures, Rise Ventures, GEF Climate Solutions, Yunus Negocios Sociais and Estímulo. More.

• Inclusive economy. Building a more inclusive market is key to growing Brazil’s economy. Once again this May, thousands of visitors will descend on Parque Ibirapuera in São Paulo for the Feira Preta festival, the largest Black cultural and entrepreneurship event in Latin America. Founder Adriana Barbosa will lay out the case for investments in Brazil’s African descendents. Over two decades, she has grown Feira Preta into a platform that has helped plug more than 10,000 Black and Indigenous creative entrepreneurs into the Brazilian economy. It’s “an economically active population,” says Barbosa. More.

• Keep reading, “Brazil’s impact and climate investment ecosystem gets ready for COP30.” Join today’s Agents of Impact Call with Giselle Vianna, Fabio Alperowitch, Fernanda Camargo, Adriana Barbosa and Ricardo Ramos of Aliança pelo Impacto, in conversation with ImpactAlpha’s David Bank and Dennis Price. Answer the Call, “Unlocking impact and climate alpha in Brazil,” today at 10am PT / 1pm ET / 3pm São Paulo. Still time to RSVP.

Agents of Impact: Follow the Talent

London-based VentureESG and ESG_VC, which provide ESG standards and resources for LPs, GP and companies in private markets, have merged. Henry Philipson, co-founder of ESG_VC, will join the council of VentureESG. VentureESG’s Johannes Lenhard, an ImpactaAlpha contributor, will lead the combined organization as CEO… Impact Cubed (soon to be iCubed) welcomes Antonia Lim, previously with Schroders, as chief investment officer… WaterEquity appoints Aleem Remtula as its head of private equity and infrastructure. 

Ninety One taps Marilyn Rowland, previously with Fiducient Advisors, as director of consultant relations… Christie Cade, previously with NeighborWorks America, joins Community Enterprise Partners as southern market vice president… ImpactAssets seeks an investment services associate… Aruwa Capital Management is looking for an investment analyst… The City of Boston has an opening for a renewable energy and finance manager… CAVA is recruiting a social impact and sustainability senior manager in Washington, DC. 

The Global Energy Alliance for People and Planet is hiring a grants management associate in New York… Also in New York, FUSE Corps is recruiting an executive fellow… Calvert Impact is on the hunt for a senior investment officer… AXA Investment Managers is recruiting a portfolio manager in London… Allstate is looking for a climate investing associate in Chicago… Raintree Family Office seeks a global chief marketing officer in Mumbai… Oikocredit is hiring an investment engagement officer. 

The Center for Community Wealth Building will host the final session in a four-part virtual series on community ownership and stewardship following business acquisition… Yejide Olutosin and Jenna Nicholas of Impact Experience will launch a report, “Strategic Financial Engagement in Movement Building,” on a webinar today at 12pm ET / 9am PT. The report offers strategies for community organizers and others to partner with major financial institutions and community development financial institutions, and for direct-action campaigns to challenge harmful practices.

👉 View (or post) impact investing jobs on ImpactAlpha’s Career Hub.

Thank you for your impact!

– Jan. 29, 2025