Photo: Mexico Development Fund to help smal businesses
The Multilateral Investment Fund (MIF) approved a $5 million equity investment in Mexico Development Fund I (MDF-I), a venture capital fund that will provide financing, as well as strategic and operational advice to small and medium-sized companies in Mexico. The Fund will be operated by PC Capital Partners, a Mexican firm with extensive experience in financing, management consulting and private equity.
MDF-I will focus on companies that provide education, financial and retail services, or produce eco-friendly products targeted at a growing and young local middle class. These companies should have a proven business concept, requiring capital to expand operations or develop new markets and products.
The investments made by MDF-I are expected to have economic and social benefits in terms of fostering entrepreneurship, creating direct and indirect employment, promoting sustainable business models and expanding education opportunities to broader populations.
MIF investment in the Fund will play a catalytic role in supporting the development of the local venture capital industry, building local management capabilities, demonstrating the financial viability of these vehicles, and mobilizing critical investors and stakeholders.