GoodKarma Impact Fund (IDBI-14651-01)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
Uninformed
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • IDB Invest (IDBI)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 20, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Good Karma Partners (GK VENTURES, LP)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 5.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IDBI website

Updated in EWS May 14, 2024

Disclosed by Bank Sep 18, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project consists of an investment of up to US$5m in Fundo de Investimento em Participacoes - Multiestrategia ("Good Karma Impact Fund" or the "Fund"), a new Brazilian VC growth impact fund which aims to invest in early-growth-stage Brazilian companies, mainly, as well as other LAC companies, with proven business models and high-growth potential, with a core product, or service that promotes a measurable solution to a social and/or environmental challenge.

The Fund is incorporated in Brazil, with a feeder structure/fund in the US for non-Brazilian investors and will be managed by Good Karma Ventures Gestora de Recursos LTDA ("Good Karma" or the "Fund Manager"). Established in 2020, Good Karma is a young independent impact investment firm with an experienced investment team with deep knowledge in climate action, healthcare equity and social development. Good Karma's team has invested more than US$4.7bn in private equity transactions.

With a target size of US$100m and a target net US$ IRR of 20%+, the Fund will invest 80% of the capital in approximately 6-8 mature venture-backed companies (Series B+) and 20% in 2 to 4 early-stage companies in sectors such as sustainable agriculture, decarbonization of industrial processes and energy, healthcare, education, and social development.

This transaction has a strong fit with IDB Invest strategic focus in supporting climate finance investments, health, and education sectors. It is also an opportunity to keep increasing IDB Invest relevance across all stages of the company life cycles, closing gaps in the "early growth" stage, as well as access to co-financing opportunities in developmental-strategic sectors.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IDB Invest, Good Karma Partners is the leading mission-driven and climate investor in Latin America. We exist to activate intellectual and financial capital to grow and scale companies that are solving global challenges and generating strong returns. Our investment team brings in-depth knowledge of regional markets, skilled deal origination, and strong execution capabilities. The team is driven by the mission to deliver impact and is grounded on a strong entrepreneurial culture and resistance to the status quo. The partners at Good Karma have a combined experience of more than 60 years in the Private Equity industry, building solid partnerships with companies in the sectors that the strategy will invest in, including climate change, healthcare equity and people development. Good Karma Impact Fund, a Brazilian fund that aims to invest in early-growth-stage Brazilian companies with proven business models and high-growth potential that promote a measurable and disruptive solution to main challenges in health, education and climate change.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

IDB INVEST

 

ACCESS TO INFORMATION


You can submit a request for information disclosure at:

https://www.idbinvest.org/en/access-information-policy.

 

ACCOUNTABILITY MECHANISM OF IDB / IDB INVEST

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IDB Invest)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IDB Invest is following its own policies for preventing or mitigating harm to people or the environment.  You can submit a complaint by sending an email to MICI@iadb.org.  You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works