Alta Growth II (IFC-31517)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
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
Apr 16, 2012
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
ALTA GROWTH CAPITAL MEXICO FUND II LP
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Mining
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Right to Food
  • Right to Health
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.00 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.
Project Cost (USD)
$ 150.00 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 27, 2018

Disclosed by Bank Mar 12, 2012

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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.

Alta Growth Capital is a private equity firm that manages the Alta Growth Capital, Mexico Fund, L.P., a fund dedicated to investing in a diversified portfolio of private equity and equity-linked investments in middle market companies operating in Mexico. According to its website, the firm target sectors benefiting from the rising domestic consumption of goods and services in the Mexican and U.S. Hispanic markets, including such industries as consumer goods, financial services, housing, healthcare, education, entertainment, and selective manufacturing and industrial sectors.

IFC supported the creation of Alta Growth Capital Management in 2007 as a partnership comprising members of the former Baring Mexico Private Equity Partners (Mexico, Project No. 9357, 4594 ) S.C. and Spring Capital. In the past five years the Alta team has raised $135 million in capital commitments distributed in three funds: i) $75 million in Alta Growth Capital, Mexico Fund, L.P. (2007); ii) $60 million in an early-stage funds (2011), Alta Ventures Mexico Fund, L.P. (Project No. 28086) which includes the Kickstart program, a seed capital facility that supports innovation. The Alta team has also created a strong network that brings together industry experts, executives, entrepreneurs, and capital sources behind the funding and mentoring of seed, venture and growth investments.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Due to a lack of information provided by the IFC, it is difficult to conduct an analysis of the human rights impacts of this financial intermediary investment.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

However, since May 2011 Alta Growth has held an equity stake in Bunker's Group, the leading marine oil distributor in Mexico. The activities of Bunker's Group may have the potential to cause environmental contamination that could result in impacts to the right to health and the right to food.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

IFC supported the creation of Alta Growth Capital Management (the “Fund Manager”) in 2007 as a partnership comprising members of the former Baring Mexico Private Equity Partners (Mexico, Project No. 9357, 4594 ) S.C. and vSpring Capital. In the past five years the Alta team has worked cohesively and raised $135 million in capital commitments distributed in three funds: i) $75 million in Alta Growth Capital, Mexico Fund, L.P. (2007); ii) $60 million in an early-stage funds (2011), Alta Ventures Mexico Fund, L.P. (Project No. 28086) which includes the Kickstart program, a seed capital facility that supports innovation. The Alta team has also created a strong network that brings together industry experts, executives, entrepreneurs, and capital sources behind the funding and mentoring of seed, venture and growth investments. The Alta Growth team is based in Mexico City, and is composed of the following senior professionals: Erik Carlberg (Managing Director), Scott McDonough (Managing Director), and Rafael Payro (Managing Director). Other team members are: Burton Flynn, Roberto Henriquez, and David Oscos. The Fund is proposed as a Canadian limited partnership formed under the laws of Ontario. A first close is expected to bring $85-105 million from new and recurring investors.

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.

IFC supported the creation of Alta Growth Capital Management (the “Fund Manager”) in 2007 as a partnership comprising members of the former Baring Mexico Private Equity Partners (Mexico, Project No. 9357, 4594 ) S.C. and vSpring Capital. In the past five years the Alta team has worked cohesively and raised $135 million in capital commitments distributed in three funds: i) $75 million in Alta Growth Capital, Mexico Fund, L.P. (2007); ii) $60 million in an early-stage funds (2011), Alta Ventures Mexico Fund, L.P. (Project No. 28086) which includes the Kickstart program, a seed capital facility that supports innovation. The Alta team has also created a strong network that brings together industry experts, executives, entrepreneurs, and capital sources behind the funding and mentoring of seed, venture and growth investments. The Alta Growth team is based in Mexico City, and is composed of the following senior professionals: Erik Carlberg (Managing Director), Scott McDonough (Managing Director), and Rafael Payro (Managing Director). Other team members are: Burton Flynn, Roberto Henriquez, and David Oscos. The Fund is proposed as a Canadian limited partnership formed under the laws of Ontario. A first close is expected to bring $85-105 million from new and recurring investors.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Alta Growth Capital Mexico Fund, L.P. Client -
- - - - Baring Mexico Private Equity Fund, L.P. Undisclosed -

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.

Mr. Scott McDonough
Managing Director
Alta Growth Capital Management
Homero 440 - 9th Floor
Mexico DF 11560
Email: mailto:smcdonough@agcmexico.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

 

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