The International Finance Corporation (IFC), part of the World Bank Group, has announced a US$10 million commitment to EcoEnterprises Partners IV, a women-led impact fund investing in small and medium-sized enterprises across Latin America and the Caribbean (LAC). The funding comes via IFC’s SME Ventures Program and aligns with the institution’s aim of improving access to capital for companies operating in frontier markets.
EcoEnterprises Partners IV is targeting a total fund size of US$150 million and plans to invest in 15–20 businesses, with a particular emphasis on the Amazon and Andean regions, as well as Central America. The fund will focus on firms that support biodiversity, advance climate resilience, and improve economic prospects in rural areas. Many of these businesses are expected to be SMEs working in markets where private investment remains limited. Countries such as Ecuador and Costa Rica have seen virtually no private equity activity over the past five years.
“IFC’s investment in EcoEnterprises Partners IV reflects our commitment to creating jobs and supporting smart development in underserved regions,” said Farid Fezoua, Global Director for Disruptive Technologies, Services, and Funds at IFC. “We aim to help deepen the private equity market in the LAC region, particularly in underserved frontier markets. By demonstrating the viability of investing in SMEs that deliver both financial returns and measurable impact, the project is expected to attract more institutional investors to the region.”
EcoEnterprises Fund was established in 1998 and has already invested more than US$150 million in 50 SMEs across the region. Its previous funds helped generate thousands of jobs, including for women in rural and conservation-focused industries.
“With IFC’s participation, EcoEnterprises Fund will be better able to accelerate businesses that deliver tangible impact for both people and planet,” said EcoEnterprises Fund CEO Tammy Newmark. “This fourth fund will help us further mainstream investing in natural climate solutions that transform the way business is achieved in the region.”
The latest fund will channel investment into areas including sustainable products, ag-tech, circular economy ventures, clean energy, regenerative agriculture, waste-to-energy innovations and biodiversity protection.
EcoEnterprises Partners Fund IV has already secured US$100 million in commitments. IFC’s investment is expected to help the fund reach its target size and expand its regional footprint.
