CASEIF IV commits to gender-lens investing and becomes the first 2X Flagship Fund in Latin America and the Caribbean (LAC)
The Central America Small Enterprises Investment Fund (CASEIF IV LP), managed by Lafise Investment Managers (LIM), has been approved as a 2X Flagship Fund, reflecting its commitment to investing with a gender lens.
CASEIF IV LP is the first fund in Latin America and the Caribbean to receive Flagship Fund status.
CASEIF IV LP will provide growth capital and structured financing to small and medium companies (SMEs) in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Dominican Republic, and Colombia.
CASEIF IV LP will apply a gender lens to its investment strategy with the objective to build a portfolio with at least 30% of the investments being 2X eligible.
LIM will continue to focus on Women's empowerment in its fund.
IFC, FinDev Canada, FMO and SIFEM have signed a Memorandum of Understanding with LIM to qualify CASEIF IV LP as the first 2X Flagship Fund in Latin America and the Caribbean, due to its commitment and intentionality on promoting women’s economic empowerment at the fund manager level and the portfolio level.
Serving SMEs in Central America
CASEIF IV LP aims to increase the economic well-being of women and men in Central America, the Dominican Republic, and Colombia. The fund contributes to addressing the shortage of growth capital in Central America, which is vital for employment preservation and economic resilience. It will provide financing and technical support to growth-oriented Small and Medium Enterprises (SMEs), with a focus on companies operating in the agribusiness, food and beverage processing, manufacturing, education, and information technology sectors. SMEs play a major role in emerging economies as contributors to job creation and economic development, yet they face challenges getting the financing they need.
Investing with a gender lens
By applying a gender lens to its investment strategy, CASEIF IV LP will help increase women’s participation in the formal economy as business owners, leaders, and employees. At least 30% of the transactions will qualify under the 2X Challenge. LIM’s experts will support each portfolio company with the implementation of a gender action plan to foster gender-inclusive workplaces and support the recruitment, retention, and career advancement of women. This is a meaningful initiative as only 48% of working-age women in Central America participate in the formal labour force.
Additionally, LIM is committed to promote women’s representation and quality employment within its team, by maintaining women’s representation within its team at 40% or more. This is especially important as gender diversity (in private equity is limited: only 15% of senior investment teams in private equity in emerging markets are gender balanced. Aside from an ethical drive to help close gender gaps between women and men to show better returns (IFC).
"The constitution of CASEIF IV LP in the midst of the pandemic has been a challenge, but it comes precisely to promote the creation of jobs in the region and boost opportunities for women," said Mr. Erick Lagos, General Director of LIM.
CASEIF IV LP investors applaud LIM's commitment to promoting women's participation at the level of the fund's management firm, as well as the companies where CASEIF IV LP invests.
What is the 2X Challenge?
The 2X Challenge was founded as a call to action to shift more capital towards investments that empower women in developing countries to access entrepreneurship and leadership opportunities, quality jobs, and products and services that enhance their economic participation.
What is a 2X Flagship Fund?
Vehicles awarded status as 2X Flagship Funds are gender-smart funds, who are committed to both improving gender diversity in the investment industry (within the fund managers themselves) and also to investing with a gender lens to build gender-smart portfolios using the 2X criteria.
What is the 2X Collaborative?
The 2X Collaborative is a leading industry body for gender lens investing, launched at the UN Generation Equality Forum 2021 in partnership with GenderSmart and the Investor Leadership Network (ILN) of global pension funds. The 2X Collaborative brings together the full range of investors deploying capital with a gender lens all over the world.