NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Deetken Impact, a Canadian asset manager, has entered into a joint venture partnership with Adobe Capital, a leading investment fund manager based in Mexico, to offer tailored and flexible financial instruments that support the growth of impact-focused businesses in the Americas. As part of this strategic acquisition, Deetken Impact has completed a 40% equity investment in Adobe Capital.

Adobe Capital manages two impact funds that provide mezzanine financing to impact-focused enterprises in Latin America across a variety of sectors. With assets under management totaling $50MM, they have pioneered the design and use of innovative self-liquidating financial instruments that support rapidly growing impact businesses while avoiding founder dilution.

Adobe Capital has unparalleled networks and experience in impact investing in Latin America, particularly when it comes to revenue-based financing and alternative finance. We see tremendous potential to integrate our teams and processes, and to create a platform to expand flexible financing options for impact businesses” said Alexa Blain, Managing Partner of Deetken Impact. “From a team perspective, we are now bringing together 24 dedicated professionals in 6 countries, which is a fantastic footprint for supporting our portfolio companies and sourcing pipeline opportunities.

Partnering with Deetken Impact was a logical next step for us given our continuing regionalization efforts. In this sense, our combined capabilities will position our joint platforms as the leading private debt player in Latin America focused on impact investing with more than 45 portfolio companies throughout 14 countries” mentioned Erik Wallsten, Managing Partner of Adobe Capital.

This is the second joint venture transaction for Deetken Impact following its acquisition of a 49.9% stake in Deetken Impact Sustainable Energy in 2019. Deetken Impact and its joint venture partners together manage 5 funds representing over US$150 million in impact assets, and share a commitment to delivering strong, stable returns to investors by supporting businesses that make a meaningful contribution to the Sustainable Development Goals.