Investment Strategy

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Pomona Impact is keen to invest in for-profit impact companies that fit the following profile:

Geographic Focus: We focus our efforts on investing in Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Colombia, and Ecuador.

Passionate, Committed Founders: We place a lot of consideration on the management team.   Do they have the skills and experience -- or have ready access to these resources -- to achieve their goals.  But mostly, integrity and passion.

Meaningful Impact: We seek opportunities that generate an unusual level of impact, beyond job generation or standard charity.  Looking for ventures that are really out there in terms of social impact.

Sustainable: Commercially viable and with excellent prospects for sustainable growth.

Sectors: We are open to all business sectors.  A few of particular interest include artisan crafts, health, education, ecotourism, agribusiness, and renewable energy.

Investment Stage: We prefer to make growth capital investments but will also consider start-up funding and working capital financing.

Pomona Impact seeks to make investments that conform to the following:​

Preference toward mezzanine / subordinated debt that has scheduled payments of principal and interest along with an income-sharing component that allows us to share in the upside if the company does well.

Will consider equity investments, especially alongside an experienced impact funding organization. Investment size ideally between $50,000 to $250,000.  Staged funding less than $50,000 will be considered if accumulated is at least $50,000.

Investment durations of between 3 to 7 years are ideal, although short-term working capital loans will be considered in special circumstances.

Pomona Impact is aware that typical exit scenarios are often improbable for ventures in this field.  Thus, it will strive to be flexible, resourceful, and creative in seeking a 'structure' that permits investment in firms that are positively impacting the poor.

OPPORTUNITY IN CENTRAL AMERICA
  • Political stability and regulatory environments continue to improve.

 

  • Divergent growth trends in Latin America: Unlike South America, which has been hurt by recent sharp declines in commodities prices, Central America is expected to experience solid GDP growth in coming years, driven by increasing demand for exports as the US economy continues to recover.

 

  • Favorable demographics: Young populations relative to developed countries means larger labor forces, growing consumer demand; greater tax revenues, less social security outlays means reduced fiscal stress for governments.
COMPETITIVE ADVANTAGE
  • Strong local presence and experience, with headquarters and entire investment team based in Central America.

 

  • Deep network of local, regional, and international partners supporting deal flow, co-investing in and providing technical assistance to portfolio companies, and more.

 

  • Ability to find deals and house portfolio companies in our co-working spaces and those of affiliates.

 

  • Majority of investments with structured exits and downside protection, and all investments denominated in USD.

 

  • Four year track record of success, with 17 companies completed since 2011 (1.1M$ invested to date).
BASIC SERVICES
  • Access to Energy – 6.7 million people still living off grid in Guatemala, El Salvador, Honduras, and Nicaragua.

 

  • Housing – 23.2 million homeless or live in poor quality housing in Guatemala, El Salvador, Honduras, and Nicaragua.

 

  • Education and Health – Innovative business models and tech are improving levels of service and reaching disconnected communities like never before.  Provided the opportunity, the poor have demonstrated their willingness to invest in their futures.
AGRICULTURE
  • Favorable growing climates, wealth of local expertise, and represents 29% of the region’s labor force1.

 

  • Enormous opportunity to integrate technology and superior production techniques (i.e. organic) to improve production, boost financial margins, and better manage risks (i.e. pests/disease).

 

  • Subsector opportunities include Ag Tech, Value Chain Extension, and Ag Logistics (i.e. refrigeration, streamlined exports).

Galeria Investment Strategy

Pomona was the first impact investor for Wakami besides or family and friends!! The fact that Pomona believed and invested in Wakami, opened the door for more investors.

 

Working with Pomona has been very important for Wakami. They have been with us in the hard times! Being able to count with their support has brought Wakami forth to our current track of being a company that is becoming a global brand. There is still a long way to go, but the path has been traced!

 

Thank you Pomona Impact!

María Pacheco
Wakami

Pomona Impact has been a wonderful partner for Uncommon Cacao. When we expanded operations from Belize into Guatemala, Pomona was helpful in connecting us to the local landscape and opening up new opportunities. Rich and his team are the clear leaders in the space in Central America and Uncommon Cacao is honored to be a part of their diverse and exciting portfolio of change-making businesses in the region!

Emily Stone
Uncommon Cacao

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