Alta Growth II (IFC-31517)

Countries
  • Mexico
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 16, 2012
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ALTA GROWTH CAPITAL MEXICO FUND II LP
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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

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

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
  • International Finance Corporation (IFC)

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 Actors

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.

Contact Information

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/