Latin American firm IGNIA holds $34m second closing on social venture fund

Investors include the Multilateral Investment Fund of the Inter-American Development Bank, a US family foundation and European and Latin American individuals.

Together with the $25m in debt financing IGNIA closed on with the IDB, the fund will have a combined total of $75m to $100m to invest in innovative businesses that serve the base of the pyramid in Latin America, according IGNIA. The social venture fund aims to respond to the underserved needs of the low income population by facilitating entrepreneurship.

IGNIA has already made two investments: a $3m commitment to Primedic, which delivers healthcare to the urban base of the pyramid; and a $2m investment in Jardines de Grijalva, an affordable housing development in Chiapas, Mexico.

Alvaro Rodriguez Arregui, IGNIA co-founder and managing partner, said, 'This $13.6m capital closing and the recently announced $25m debt financing have both been closed after the start of the financial crisis. We deeply appreciate the trust of our investors at this sensitive time, and it is a clear indication of how strong they deem the IGNIA business model, the team we have assembled and our theory of change.'

Michael Chu, co-founder and managing director of IGNIA, added, 'Partnering with the MIF will bring tremendous value to IGNIA. We will benefit from the substantial experience the MIF has built in pioneering equity investing in the region.'

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