CoreCo Central America Fund I


CoreCo Central America Fund I L.P., a Private Equity fund with focus on SMEs located in Central America. The Fund will target fast growing service industry sectors, such as business services, healthcare, IT, financial services, telecommunications, consumer goods, retail and logistics. CoreCo will make primarily USD 2-5 million investments in SMEs that have the potential to become regional leaders in their respective sectors, focusing on companies that already have a regional presence. The Fund will have a ten year life, with two possible one-year extensions. The beneficiary countries of the fund are Guatemala, Honduras, El Salvador, Belize, Nicaragua, Costa Rica and Panama.

BIO acts as a catalyst for mobilizing institutional capital as well as private sector money through participating in the launching of CoreCo. As a core investor, BIO will also play a pioneering role in the Private Equity industry in Central America, as it further supports the development of private equity. The latter is key when ensuring a healthy and strong SME sector.

BIO's growing experience in structuring SME Funds will ensure that CoreCo incorporates best practices. In addition, through its participation on the Fund’s Advisory Board, BIO will play an active role in assisting the Fund Manager to adopt best practice corporate governance and environmental and social standards at the Fund and portfolio company level.

The Fund will increase the availability of private equity financing in Central America, thereby filling a financing gap faced by Central American SMEs that have growth potential but face difficulties in acquiring long term financing. The Fund will also contribute to SME development, in particular it will improve SMEs governance and operations. The SMEs that CoreCo will invest in will: directly create local jobs by hiring personnel as they grow; contribute to local economic growth by purchasing goods and services from other businesses in the region, which can also lead to indirect job creation; and pay taxes, contributing resources that may be used by governments to make improvements in local communities.

BIO is investing together with the World Bank’s IFC, the Inter-American Development Bank (IADB) and BIO’s European Development Finance Institution partners: German DEG, Norwegian Norfund, and Swiss Sifem.

  • Investment amount (€):

    € 3.09 M

    Registered offices: Delaware Beneficiary countries: Guatemala, Honduras, El Salvador, Belize, Nicaragua, Costa Rica and Panama

  • Contract signature :


    SME Fund

  • Nature of intervention :


  • Development impacts :

    • 1 — Local economic growth