Institutional investors have pledged an aggregate of $190 million to the Central American Mezzanine Infrastructure Fund II (CAMIF II), a vehicle focused on infrastructure debt and equity investments in Central America, Mexico and Colombia.
The commitments are allocated over three tranches: $52 million for the equity tranche, $40.5 million for the mezzanine tranche and $100 million for the senior loan tranche. The fund aims to collect $250 million, a target its sponsors expect will be reached within the next 12 months.
While the senior loan tranche was entirely subscribed by the Inter-American Development Bank (IDB), the remaining funds were committed by a mix of national and international development finance institutions.
These include the International Finance Corporation (with $17 million in equity and $13 million in mezzanine) and the Netherland’s FMO (with $17.5 million in mezzanine and $12.5 million in equity). FinnFund, Obviam/SIFEM and Proparco, development finance institutions from Finland, Switzerland and France respectively, have also invested $10 million each.
CAMIF II will be managed by LAP Latin American Partners (LAP), the Washington DC-based firm that was also responsible for investing the $150 million, 2006-vintage CAMIF I. The team, which also has offices in Mexico and Central America, has pledged $2.5 million to CAMIF II’s equity tranche.
The 12-year mezzanine fund will target investments in renewable energy, telecommunications and natural resources.