DFC - U.S. International Development Finance Corporation

04/18/2024 | Press release | Distributed by Public on 04/18/2024 07:16

DFC Boosts Mexico’s Ecosystem Regeneration With $4M Investment

WASHINGTON, D.C. - The U.S. International Development Finance Corporation (DFC) has approved an up to $4 million investment in Regenera Ventures I, a pioneering impact investment fund aimed at bolstering the regeneration of Mexico's ecosystems that was created with the support of the United States Agency for International Development (USAID) in Mexico.

Regenera Ventures I, a women-founded and -led fund, directs its investments toward companies embracing regenerative practices that enhance biodiversity and contribute to the restoration of Mexican terrestrial, marine, and coastal ecosystems. DFC's endorsement represents a significant milestone, helping the fund reach its targeted capital size of up to $30 million.

"DFC is proud to support Regenera Ventures I in catalyzing investments in rural Mexico to support regenerative agricultural practices. This partnership will help unlock crucial financing that will bolster sustainable agriculture and local communities in rural areas across the country," said Mateo Goldman, DFC's Acting Vice President of Investment Funds.

"USAID is dedicated to cultivating lasting relationships across the landscape, fostering mutual understanding among investors, buyers, and sustainable producers. Regenera Ventures I is a pioneer in an innovative investment strategy rooted in regenerative practices by enhancing natural capital. This approach not only promotes mutual trust and shared benefits, but also enables a comprehensive reassessment of risks from all angles," shared Jene Thomas, USAID Mexico Mission Director.

"Regenera Ventures bridges a crucial financing gap for regenerative enterprises in Mexico. DFC's strategic investment acts as a catalyst, sparking investor interest in nature-based climate solutions. This backing not only validates our mission but also amplifies our capacity to make a tangible impact in Mexico," explains Stevie Smyth, General Partner of SVX México.

Regenera Ventures I targets investments in 12 to 15 companies across various sectors, including agribusiness, forestry, nature tourism, regenerative cattle ranging, aquaculture, and enterprises facilitating the transition to regenerative agriculture. The fund prioritizes companies advancing ecosocial health by enhancing soil quality, fostering community livelihoods, conserving biodiversity, sequestering carbon, and curbing greenhouse gas emissions. Through local leadership and a gender lens, the fund aims to demonstrate that nature-based investments can deliver both substantial impact and stable financial returns.

Regenera Ventures I was developed through Sustainable Landscapes Ventures, a USAID-funded project implemented by Conservation International and a consortium of partners. The project develops sustainable and inclusive value chains at scale that are market-driven and investor-ready in the Mexican states of Chiapas, Oaxaca, and the Yucatán Peninsula. Much of Regenera Ventures I's pipeline, initial thesis, and development of impact metrics and safeguards are supported by the project.

"The availability of new funds is a very important step to ensure the sustainable growth of companies that are committed to caring for nature. It is also contributing to climate change mitigation by offering an alternative that changes the way investors and companies manage the landscape and its natural resources," said Leticia Gutiérrez Lorandi, Vice President of Conservation International-Mexico.

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About DFC

The U.S. International Development Finance Corporation (DFC) is the U.S. Government's development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.  

About Regenera Ventures I

Regenera Ventures I is a private fund dedicated to supporting companies transitioning to or scaling regenerative production practices, fostering biodiversity improvements, and contributing to the restoration of Mexican ecosystems. The fund's mission is to partner with businesses facilitating the shift of local producers toward resilient and diversified production methods, in harmony with ecological and social well-being. The fund's investment approach offers a structured exit strategy, flexible returns, and alignment with its impact-driven mission.