IDB Invest provided a USD10m loan facility to Portland Caribbean Fund II, a multi-sector growth fund that targets middle market companies in the Caribbean region.

(IDB Invest)

IDB Invest has provided a loan facility of up to $10 million to Portland Caribbean Fund II, (PCF II or the Fund) to provide support for its portfolio companies impacted by the COVID-19 crisis.

PCF II is a 2014 vintage growth equity fund with over $200 million in limited partner commitments, managed by Portland Private Equity II (PPE) an experienced manager primarily focused on investing in middle-market Caribbean companies.

IDB Invest is an existing limited partner in the Fund. The Fund is fully invested in 10 investments diversified across several key industries and countries in the Caribbean and Latin America. The severe economic impact of the pandemic on these largely tourism and commodity dependent economies has decimated traditional funding sources. 

This transaction will back the pre-pandemic value built by PPE and support the growth and recovery of the Fund’s portfolio companies, by providing them with resources to finance working capital and capital investments necessary to adjust to the post-pandemic reality. The growth of these companies will translate into increased sales, higher employment, higher productivity, and increased domestic purchases. IDB Invest’s loan facility will indirectly protect the approximately 20,000 employees of the Fund’s portfolio companies.

IDB Invest will assist PCF II with technical advisory services (TA) to provide PPE with Gender, Diversity, and Inclusion (GDI) training to develop capacity building programs among its investees, promoting best practices about diversity in its human capital and value chains. As a result, PPE is expected to apply the Women’s Empowerment Principles tool (WEP) to all investee companies and develop GDI action plans for the sub-borrowers.

This deal is expected to contribute to three United Nations Sustainable Development Goals (SDGs): Gender Equality (SDG 5), Decent work and economic growth (SDG 8), and Reduced inequalities (SDG 10).