MICROCAPITAL BRIEF: IFC Invests $10m in CoreCo Central America Fund to Support SMEs

CoreCo Central America Fund I, a private equity fund based in Guatemala that invests in small and medium-sized enterprises (SMEs) in Central America, recently received an equity investment of USD 10 million from the International Finance Corporation (IFC), the private-investment arm of the World Bank Group. Intended to stimulate job creation and increase accessibility to financial services, the funds are to be used to develop sectors such as, “healthcare, information technology, retail, financial and business services.” IFC also intends to encourage the implementation of best-practice corporate governance and environmental and social standards in the companies that CoreCo finances.

CoreCo Central America Fund I, a USD 54 million fund from CoreCo Latin America, was founded in 2009 by William Mueck and Alex von der Goltz, two prominent North American investment bankers and private equity investors. The fund is valued at USD 54 million as of 2012. Since 2007, IFC has invested approximately USD 2.6 billion in Central America.

By Sarah Benali, Research Associate

About CoreCo Latin America
Based in Guatemala, CoreCo Latin America is a private equity fund dedicated to growth equity investment in Central America. The fund was established in 2009 by William Mueck and Alex von der Goltz, two investment bankers and private equity investors in North America, to target small and medium-sized enterprises (SMEs) in the region. Valued at USD 54 million, CoreCo Latin America is held by CoreCo Holdings of United States of America.

About International Finance Corporation
A member of the World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects.

Sources and Additional Resources

International Finance Corporation Press Release: “IFC Invests $10 million to Grow and Improve Small Businesses Across Central America,” September 2012, http://www.ifc.org/ifcext/pressroom/IFCPressRoom.nsf/0/2EC70D48633B82FF85257A8600689286

Inter-American Development Bank Press Release: “IDB’s Multilateral Investment Fund supports CoreCo Central America I L.P. Fund,” December 2010, http://www.iadb.org/mobile/news/detail.cfm?lang=en&id=8870

MicroCapital.org Story: “MICROCAPITAL BRIEF: Inter-American Development Bank (IDB) Group’s Multilateral Investment Fund (MIF) to Loan $7m to Root Capital and Microfinance Institutions FIDERPAC of Costa Rica, ASDIR of Guatemala; Announces $7m Equity Investment in CoreCo Central America I Fund; Rolls Out Psychometric Risk Assessment Tool,” October 25, 2011, https://www.microcapital.org/microcapital-brief-inter-american-development-bank-idb-group%E2%80%99s-multilateral-investment-fund-mif-to-loan-7m-to-root-capital-and-microfinance-institutions-fiderpac-of-costa-rica-asdir-of/

MicroCapital Universe Profile: IFC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: CoreCo Latin America
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CoreCo

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