MICROCAPITAL BRIEF: Deetken Impact Acquires 40% Equity Stake in Asset Manager Adobe Capital, Seeking to Boost Social, Environmental Returns in Latin America

Deetken Impact, a Canada-based asset manager, recently paid an undisclosed sum to acquire 40 percent of the shares of Adobe Capital, a Mexico-based manager of investments intended to create positive social and environmental impact. The goal of the partnership is to increase the availability of “tailored and flexible financial instruments that support the growth of impact-focused businesses in the Americas.” As of October 2021, Adobe Capital has USD 50 million deployed via 10 companies.

Deetken primarily invests in Latin America and the Caribbean in the following sectors: funders of small and medium-sized enterprises, women’s enterprise, renewable energy, housing, and health. As of 2021, the firm manages or co-manages assets valued at USD 150 million deployed via 44 companies in 14 countries. It accepts fixed-income and equity investments of USD 250,000 and larger via multiple vehicles, one with a target return as high as 7 percent and another with a 10-percent first-loss guarantee.

By Zachary DeLuca, Research Associate

Sources and Additional Resources

Deetken Impact press release
https://deetkenimpact.com/blog/deetken-impact-and-adobe-capital-partner-to-expand-flexible-financing-to-impact-driven-businesses-in-latin-america/

Adobe Capital homepage
http://adobecapital.org/

Adobe Capital annual report
http://adobecapital.org/wp-content/uploads/2019/08/IMPACT-REPORT-Six-years-pioneering-impact-investing-1.pdf

Deetken Impact homepage
https://deetkenimpact.com/

Previous MicroCapital article on Deetken Impact
https://www.microcapital.org/microcapital-brief-deetken-impact-invests-in-pro-mujer-mexico-provider-of-education-healthcare-microfinance-through-ilu-womens-empowerment-fund

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