Investment thesis: The growing inequality in the Latin America, coupled with the rise of high caliber mission driven entrepreneurs that are addressing the needs of low income population presents a substantial opportunity for investors to achieve both social and financial returns while making a lasting impact. These companies are an important engine of growth in the region and have the capacity to truly drive change. However, most of these enterprises struggle to obtain investment capital. ALCP intends to provide critical capital and operational support to enable these businesses to scale their operations, maximize their impact and reach long-term financial profitability.
Impact and ESG considerations: ALCP's main impact objective is to tackly poverty by investing in early growth companies in the agribusiness, education and access to energy sectors. Primarily, the fund tracks industry-specific impact metrics, using Acumen’s framework to measure impact (breadth, depth, poverty focus). In addition, gender-related metrics are measured across sectors. ALCP tracks its contribution to the attainment of certain Sustainable Development Goals in its target countries. Finally, ALCP includes ESG considerations into every phase of the investment cycle, from due diligence (based on IFC ESG Performance Standards) to portfolio management, by supporting investees to adapt best ESG practices.