VANCOUVER, BC (September 20, 2022) – Deetken Impact has launched Deetken Impact Alternative Finance (“DIAF”) Fund IV, LP (the “Fund”) as a result of the synergistic partnership of Deetken Impact and Adobe Capital. The Fund offers flexible alternatives to traditional debt or equity instruments by designing founder-friendly financing solutions that aim to support long-term growth. The Fund will invest in profitable, growth-stage enterprises with proven impact models and a commitment to gender equality throughout Spanish-speaking Latin America and the Caribbean.
The Fund is seeking aggregate equity commitments totalling US$100 million to invest in a geographically-diversified portfolio of impact enterprises via tailored debt structures ranging from Revenue-Based Financing (“RBF”) to subordinated loans with or without equity kickers. Given Deetken Impact’s pioneering role as a gender lens investor, a robust gender lens investing framework will be applied to assess and advance each portfolio company’s gender business practices.
“We are very excited about the launch of DIAF Fund IV to continue providing tailored financing solutions to promising impact enterprises across Latin America & the Caribbean. This region has tremendous potential, yet has struggled historically in terms of access to financing, a gap we are especially well positioned to address having managed 3 impact funds to date totalling US$85 million in AUM that have completed 42 investments in 14 countries.”
Erik Wallsten, Managing Partner, Deetken Impact
Latin America & the Caribbean is the region hardest-hit by the global pandemic, with more than 20 million people pushed into poverty*. Women have been affected disproportionately, and as a result, the pandemic is estimated to have set back gender parity by more than three decades, up from 100 years pre-pandemic to 136 today**. Additionally, nearly one third of SMEs in the region are financially constrained, consistently citing a lack of access to finance as a key barrier to growth***.
We believe that many of the region’s prevailing social and environmental challenges can be addressed through profitable, market-based solutions. The Fund aims to facilitate this by providing financing to impact enterprises that are poised for growth and meaningfully contribute to the Sustainable Development Goals (“SDGs”) in the sectors of education, healthcare, affordable housing, financial inclusion, circular economy and responsible consumption.
As Deetken Impact’s fourth debt impact fund, the Fund draws on a strong track record and deep regional network. Previously, DIAF launched Mexico’s first triple bottom line impact investment fund, pioneering the use of revenue-based financing in the region, as well as the first gender-lens investing fund dedicated to Latin America & the Caribbean to empower women and advance gender equality.
About Deetken Impact
Deetken Impact is a Canadian impact asset manager focused on investments in women’s empowerment, clean energy, and impact enterprises in Latin America and the Caribbean. Deetken Impact manages US$150 million in assets across five funds with a diverse team of seasoned investment professionals based in Mexico, Central America, South America, the Caribbean, and Canada, and spanning a track record of more than two decades of direct investing experience. Deetken Impact is a 2022 Impact Assets 50 Manager.
About Deetken Impact Alternative Finance
DIAF resulted from the synergistic partnership of Deetken Impact and Adobe Capital with US$85 million in AUM and having made 42 investments in 14 countries by providing tailored financing for impact enterprises in Latin America and the Caribbean. DIAF offers a flexible alternative to traditional equity and debt instruments by designing financing solutions that are founder-friendly and aim to support long-term, sustainable growth.
* Economic Commission for Latin America and the Caribbean (ECLAC) (2021). The Social Panorama of Latin America 2021.
** World Economic Forum (2021). Global Gender Gap Report 2021
*** International Finance Corporation (2017). MSME Finance Gap.
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