IGNIA plans to deploys $200 million in new capital over the next 12 years and invest in approximately 24 companies. Investment sizes will range from $2-11 million and will be primarily equity investments. IGNIA estimates it will to hold each investment for around seven years in its portfolio before exiting. The group will have both minority and majority positions in these enterprises, determined on a case-by-case basis. IGNIA Partners will continue to target enterprises that deliver a basic good or service at a lower cost but higher quality to the Base of the Pyramid (BoP). In terms of geographic scope, IGNIA hopes to make investments in Mexico, Brazil, and Colombia. These funds will be capitalized by a variety of investors, including public and private institutions, family foundations, and high net worth individuals. Investors in IGNIA's previous fund include: IDB, IFC, MIF, J.P. Morgan, Omidyar Network, Rockefeller Foundation, Soros Economic Development Fund, Corporacion Mexican de Inversiones de Capital (Fondo de Fondos), and Corporacion Andina de Fomento (CAF). Each brings a distinctive set of skills and expertise to the table, enriching the fund tremendously.
The Base of the Pyramid (BoP) is comprised of those who make less than $3,000 per year, and represents 70% of Latin America's population, approximately 360 million people. For multiple reasons, the BoP has largely remained disadvantaged in accessing the formal economy. This can be attributed to many factors including lack of complete information, entry barriers, lack of property rights, and high transaction costs. This has resulted in two signature characteristics at the BoP: only low-quality goods and services typically reach the poor, and BoP consumers tend to pay substantially higher prices for a given product than available to their more privileged counterparts.
SEEKING: Implementing Partners, Media/Marketing Opportunities
IGNIA is interested in partners that can help with fundraising efforts and in promoting wider media attention.
OFFERING: Best Practice Information
IGNIA is willing to share its expertise in investing in the base of the pyramid with other CGI partners that are doing similar work and can benefit from this knowledge.