E+Co’s growth and sustainability plans are built on striking a balance between making investments in first-of-a-kind enterprises across a variety of clean energy sub-sectors (“investing for width”) and making a number of subsequent investments in those sub-sectors that show the most promise for impact (“investing for depth”). Where E+Co realizes the potential and need for deepening its commitment to promising sub-sectors, it will consider establishing a specialized fund and a related affiliated fund management company to create the focus and concentration desired by investors.

In 2005, E+Co launched its first such venture, E+Co Capital-Latin America. Fernando Alvarado, E+Co’s former regional manager for Latin America and Caribbean, was appointed CEO. E+Co Capital-Latin America serves as fund manager for the Central American Renewable Energy and Cleaner Production Facility (CAREC), which reached its US$15 million first closing milestone in June 2005. CAREC, initiated with core financial and institutional support from the Multilateral Investment Fund (MIF) of the Inter-American Development Bank, will invest in renewable energy, energy efficiency and cleaner production projects in Central America. The focus will be on small and medium-sized enterprises, with annual revenues of up to US$5 million and less than 100 employees.

CAREC is structured to utilize mezzanine-financing mechanisms such as subordinated debt, convertible debt, preferred shares and other quasi-equity instruments. Since its portfolio has excellent potential to reduce carbon emissions, CAREC will also undertake to package and sell carbon emission reduction credits. This additional revenue stream will add to the financial viability of many clean energy deals.

For more information, visit E+Co Capital’s website.