CoreCo Central America Fund I LP

Equity : June 2012

BIO has invested USD 4 M in equity in the CoreCo Central America Fund I LP, a PE fund focused on SMEs in Central America.

Amount

€ 3,210,320.00

Type of investment

Equity

Development impacts

  • Local economic growth

Beneficiary locations

Latin America and Caribbean: Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua

Investment field

Investment Companies & Funds

Activity

SME Fund

Organisation

CoreCo Central America Fund I LP

Domicile

Florida, United States

CoreCo Central America Fund I L.P. (CoreCo) is a PE fund which will invest in 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 invest 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 management company of the Fund is CoreCo Management, Inc which is domiciled in Florida, USA.

Impact

This project will increase the availability of PE financing in Central America: the Fund aims to fill a financing gap faced by Central American SMEs that have growth potential but face difficulties in acquiring long-term financing.

The Fund will contribute to SME development: In particular, the Fund aims to improve SME’s 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.

The Fund will contribute to the development of the VC/PE industry in the region by supporting the creation of additional fund management capacity.

Development impacts

  • Local economic growth

    The Fund will invest in SMEs located in Central America; it will target fast-growing service industry sectors, such as business services, healthcare, IT, financial services, telecommunications, consumer goods, retail and logistics. CoreCo will invest in SMEs that have the potential to become regional leaders in their respective sectors, focusing on companies that already have a regional presence.

Made possible through this investment

Thanks to the direct funding from BIO, the following second-line investments have been made possible.

CPG Hospitality

Manager and owner of marquee hospitality properties in Central America and the Caribbean

Directores Estrategicos (Save-a-lot)

Guatemala

Guatemalan branch of the United States’ largest hard discount grocery chain, Save-A-Lot

GRS

Guatemala

Distributor of home appliances with operations in Honduras, Guatemala, El Salvador and Nicaragua

MBMG

Guatemala

Multi-brand management of retail fashion, cosmetics, and accessories brand franchises

Roland

Guatemala

Packaging and distribution of heritage-brand peanuts and healthy snacks

Synergie Global Service Solutions - SGSS

Costa Rican leader in automotive product sales and distribution to the trade

TotalPET

Manufacturing & Services - Packaging

Tegu

Honduras

Vertically-integrated premium sustainable woodblock toy company with manufacturing operations in Honduras

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