Alta Growth Capital Mexico Fund L.P.

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_x000C_IFC proposes to make an investment of up to $20 million in Alta Growth Capital, Mexico Fund, LP (Alta Growth or the Fund), a private equity fund that seeks to invest in medium-size companies in Mexico with enterprise values between US$20 million to $100 million. In the first closing of the Fund, IFC will invest up to $15M. Additional $5M may be invested in subsequent closings based on fund-raising progress. This represents a slight increase from the original SPI which proposed up to $15M. Alta Growth will be structured as a Canadian limited partnership, with a target size of at least $150 million. The Fund will focus on businesses in the under served lower end of the middle market where there is substantial deal flow with low competition from bank and local private equity funds. The Fund will seek to make 8-10 investments with an average investment size of $10-20 million. Alta Growth’s investment strategy has developed as a response to shrinking financing to Mexican small and medium enterprises (SMEs) over the last decade. While financing to companies has decreased, consumer lending (including credit cards and mortgages) is growing. This combination has created a financing gap. Without growth capital, local companies will not keep up with current demand.