Fondo Escala Capital
The project involves a private equity closed-end investment fund (the "Fund") for growth financing of small and medium-size companies, managed by Promotora de Proyectos, a private equity management company whose main shareholder is Grupo de Inversiones Suramericana S.A. Grupo de Inversiones Suramericana is the main shareholder of Grupo Bancolombia. The Fund’s administrator is Valores Bancolombia, a stockbroker for Grupo Bancolombia. The Fund is expected to close with investment commitments of CO$80 billion (eighty billion Colombian pesos), equivalent to approximately US$40 million.
The Fund is organized under Decree 2175, enacted in June 2007 to establish a framework for the sound development of the equity investment industry in Colombia.
The major investors are Colombian institutional investors and pension funds (they account for about 50%). Three development financial institutions, including the IIC, will account for about 25% of investment commitments.
The Fund will invest to further the growth of small and medium-size companies in Colombia, primarily. Most of the Fund’s portfolio is expected to be composed of companies with annual sales below CO$40 billion, equivalent to approximately US$20 million.
This is a category III project according to the IIC’s environmental and labor review procedure because it could produce certain effects that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria.
The companies whose projects are financed with funding from the Fund will be subject to an environmental and labor review consistent with IIC’s requirements and with internationally recognized and national environmental and labor laws, regulations, and standards. The Fund is committed to meet the IIC’s environmental and labor procedures and guidelines, and will abide by the IIC’s list of excluded activities. To become proficient with the application of the IIC’s environmental and labor requirements, members of the Fund’s management team agreed to attend one of the environmental training workshop organized annually by the IIC.