Community Development Venture Capital Alliance

The EcoEnterprises Fund
4245 North Fairfax Drive, Arlington, VA 22203
Telephone: (703) 841-4164
Fax: 703-841-4880
Website: www.ecoenterprisesfund.com
Email: not available

Key Personnel:
Tammy Newmark, Fund Manager
Michele Pena, Director of Business Development

Established: 2001

Total Committed Capital: $10 million, with a goal of expansion to between $25 and $50 million.

Amount Invested: $1.4 million

Geographic Focus: Latin America and the Carribean

Background
The EcoEnterprises Fund was established by the Nature Conservancy and the Multilateral Investment Fund of the Inter-American Development Bank to offer venture capital to environmentally and socially responsible businesses. Currently the Fund is pioneering its efforts in Latin America and the Caribbean. Ultimately this important financing instrument will be a tool used to protect critical ecosystems worldwide. By 2010, the Fund will invest in approximately 30 small- to medium-scale ventures that: employ sound environmental practices in their operations; provide financial benefits to the community and local environmental organizations; pass rigorous environmental and social screens; and meet the Fund's financial criteria. All ventures are also required to have a nonprofit environmental or community organization as a collaborator. The fund seeks return of 18 to 20 percent on equity investments and lower returns on debt instruments. Based on assumed capital gains, losses, management fees, operating expenses and expected liquidation after 10 years, we project total returns to be up to eight percent.

Social Mission
The Funds' goal is to protect critical ecosystems and generate profits for local people.

Investment Information
The Fund invests in Latin America and the Caribbean in profitable businesses involved in sustainable agriculture (including organic, apiculture and aquaculture), non-timber forest products, sustainable forestry, and ecotourism. Investments range from $50,000 to $800,000, with an average investment of $225,000. The Fund invests in companies at all stages of development with sales revenues up to $3 million. Businesses in its portfolio range from new ventures launched by nonprofit organizations to established companies that pay fees to a local conservation partner. Preference is given to businesses that are unable to secure financing from conventional sources due to their small size, the innovative nature of their business and/or the financial risks involved. The Venture Fund finances up to 50 percent of the individual project costs.