Impact investor Capria hits first close of $100m emerging markets FoF

Capria managing partner Dave Richards
Dave Richards, Managing Partner, Capria

Global impact investment firm Capria has reached the first close of its $100-million fund of funds that will invest in emerging market-focused funds.

While the total amount raised till the first close was not disclosed, Vulcan Capital, the investment arm of the late Paul Allen, has invested $20 million in Capria Fund. 

Other key investors in the fund include Omidyar Network, Ford Foundation, and Resonance Impact Fund. Capria has already secured commitments from Bill Gates and International Finance Corporation, which had disclosed in July that it was considering an equity investment of up to $13 million in the fund.

Individual family offices and foundations, including Ceniarth, Sall Family Foundation, and Sorenson Impact Foundation, have also invested in the fund.

Capria invests in venture capital, private equity, and other debt and equity funds backing early-growth businesses.

The fund will make investments in fund management companies in emerging markets. It also seeks to make commitments into emerging market investment funds as a limited partner and direct investments into local businesses.

The fund plans to invest capital in countries in Sub-Saharan Africa, South/South-East Asia and Latin America in areas such as agriculture, food security, healthcare, and education.

Capria is targeting to make aggregate commitments of $90 million in the best fund managers across Africa, LatAm and Asia by 2020,” the investment firm said in its release.

With the first close of the fund, Capria also announced that it has made its first two commitments as a limited partner to Adobe Capital (Mexico) and Fen Ventures (Chile).

Adobe Capital’s second $40-million fund invests in early-growth of enterprises operating in sectors such as healthcare, education, housing and alternative energy in Mexico and Latin America. Meanwhile, Fen Ventures’ $21-million fund invests in early-stage tech and life sciences companies in Chile.

Capria further said it is looking to grow current network-wide assets under management of $259 million to over $750 million by 2020. Apart from its recent two fund commitments, its network includes Unitus Ventures in India, Brightmore Capital in Africa, idacapital in Turkey, Odesio in Colombia and Brazil-based Prismapar Capital among others.

In a recent interview with DEALSTREETASIA, Capria managing partner Dave Richards had highlighted that Capria’s philosophy was centred around backing first-time managers and building long-term relationships with these executives. It currently backs 16 managers.

The global impact fund has also been eyeing the Southeast Asian market for growth and opened an office in Singapore last month.

In July, it announced a partnership with the Australian Government’s Department of Foreign Affairs and Trade (DFAT) to expand its investment platform into the region. Through the partnership, over the next two years, the US-based investment firm will partner with and invest in up to five first-time and experienced fund managers in Southeast Asia, each of which will invest in 5-10 small and fast-growing businesses per year going forward.

“Essentially we will be investing millions of dollars into a couple of new managers from Southeast Asia. We are targeting to allocate (this) from the new $100-125 million fund – about 30 per cent to 40 per cent of this fund will be allocated to managers in South and Southeast Asia,” Dave Richards had told this portal.

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