Alvaro Rodriguez Arregui and the IGNIA Fund at a glance
Since creating the IGNIA Fund in 2007, Alvaro Rodriguez Arregui has shown the significant interest of the BoP* market for investors. The IGNIA Fund meets the growing need for financing from small and medium-sized companies seeking to serve the BoP market.
• Venture Capital Fund of US$75 million - $75m in equity & $25m in debt,
• Investments in small and medium-sized enterprises in Latin America in the ‘Bottom of the Pyramid (BoP) segment.
• Investment areas: housing, health, education, financial services, etc.
• First investment in 2008 of US$6 million in a clinic for the BoP population: Transparencia Medica
• Lack of access to capital for BoP segment companies to finance their growth.
• Preconceived idea that low-income populations cannot be economic players
• Lack of investor confidence in this type of company
• Creation of the venture capital fund in the BoP segment
• Educating investors to see the BoP market as an opportunity
• Return on investment of 25 to 30%,
• A broad spectrum of investors: development agencies (IADB, World Bank, etc.) but also conventional investors (banks, funds, multinationals, etc.),
• Development of a whole industry,
• Transparencia Medica’s return on investment is three years in advance of the business plan.
* In economics, BoP (Bottom of the Pyramid) represents the largest and poorest socio-economic group: more than 4 billion people live on less than $3,000 per year. In Latin America, this group represents 360 million individuals and purchasing power of more than $520 billion.