Impact investment manager Incofin IM today announced it has finalized the sale of the majority equity stake in Crezcamos via a MBO transaction with the founder and current general manager of the company, Mauricio Osorio.
This investment in Crezcamos validates Incofin IM’s Capital+ approach model, which combines investment, governance guidance and matching grants for technical assistance to be a valuable partner in developing and strengthening the company invested in as well as to create value for the investors of the funds managed by Incofin IM.
Over the course of 8 years, Incofin has been a key contributor to development and rural expansion of Crezcamos. As the first international shareholder, Incofin IM played a catalytic role in attracting new investors and funders to Crezcamos. Furthermore, Incofin IM has led the efforts of professionalizing the corporate governance of the company and the roll out of Crezcamos’ successful rural expansion. In addition, Incofin IM implemented a number of effective operational support projects focused on sophisticating different areas of the company, such as a capacity building framework for loan officers and middle managers, the implementation of risk management tools and accelerated product development.
Incofin made its first equity infusion in 2009 when Crezcamos was a microfinance institution in its early stages with a loan portfolio of just over COP 7,500 million (approx. USD 2.5 million), only 5,000 clients and not yet financially sustainable. Today Crezcamos is one of the leading rural microfinance institutions in Colombia in terms of profitability and social performance, managing a loan portfolio of COP 260,000 million (approx. USD 90 million) and providing financial products and services to more than 110,000 micro and small entrepreneurs in Colombia, through a network of over 60 branches. Over 65% of Crezcamos’ clients live in rural areas of Colombia and more than 25% of its loan portfolio is disbursed to clients with activities in the agricultural value chain.
Under the transaction Rural Impulse Fund and Rural Impulse Fund II, both funds managed/advised by Incofin IM, jointly sold their entire 55.2% participation in Crezcamos, providing for an attractive double-digit return for both funds. This successful exit is another example of Incofin IM’s ability to
realize financially attractive returns for funds under its management while ensuring the former investees have the best possibilities to continue their successful journeys. This is the 8th exit realized by Incofin IM over the last 12 months.
Advisors and Counsel
GBS Finanzas acted as financial advisor to Rural Impulse Fund and Rural Impulse Fund II and Dentons Cardenas & Cardenas Abogados acted as their legal advisor.
About Incofin IM
Incofin Investment Management (www.incofin.com) manages impact investment funds and is a global leader in rural and agricultural finance. It is an AIFM licensed fund manager, advising and managing 850 M USD of assets. Its flagship funds include Rural Impulse Fund I (2007), Rural Impulse Fund II (2010) and agRIF (2015). It is headquartered in Belgium and has a network of 4 regional offices and representations. It has a team of 45 experienced staff with in-depth knowledge of rural finance and private equity. The investment in Crezcamos has been managed from Incofin’s regional office for the LAC region in Bogotá.
Crezcamos SA (www.crezcamos.com) was founded in 2008, with a social mission focused on accompanying the development of small and micro
entrepreneurs with adequate and responsible financial services, primarily in the rural areas of Colombia. Today, Crezcamos SA operates as a microfinance institution, supervised by Superintendence of Companies in Colombia, contributing to financial inclusion in Colombia and serving over 110,000 clients with credit, micro-insurance, collection and money transfer services. It has more than 60 branches, mainly located in the
northeastern rural areas of Colombia.