NOTE: This offering is for 5-year Deetken Impact Fund LP Units.  Deetken Impact also offers an Impact Bond investment in the Ilu Fund. Impact Bonds, which contribute to the Deetken Impact Fund, are structured as $25,000 bonds invested at a fixed interest rate of 5% over a 5-year term. The bonds are RRSP and TFSA eligible. Please click here to see that offering.

Investment Offering: $10,000,000 raise (minimum investment: $250,000 US$)

Structure: This security is structured as an LP unit investment with a target yield of 6 to 7% in U.S. dollars. LP units have a term of 5 years.

Use of Proceeds: The Ilu Fund focuses on senior and subordinated debt investments in Latin America and the Caribbean. The fund invests in a diversified portfolio of high impact businesses that promote women in leadership and governance, products and services that meet the needs of women and girls, gender-sensitive value chains, and workplace equity. Portfolio investments include financial institutions that provide integrated and thoughtfully designed services for low-income women, such as access to healthcare, educational loans and financial services, as well as gender-smart investments in renewable energy, affordable housing, and social enterprises.

Target Close: Initial close Q1 2019; Final close is expected in 2021.

Please note that this is not a complete investment summary. Investors should read all associated documentation including the offering memorandum and associated securities agreements before considering or making any investment.

Launched in June 2016, the Ilu Women’s Empowerment Fund is a Canadian impact fund focused on senior and subordinated debt investments in Latin America and the Caribbean. The Fund invests in a diversified portfolio of high impact businesses that promote women in leadership and governance, products and services that meet the needs of women and girls, gender-sensitive value chains, and workplace equity.

The Ilu Fund currently has $25MM in committed capital, including a $4MM contribution from the management team. The fund is structured to allow for contributions from Canadian, US and international investors, as well as a choice for each investor to participate through either the Bonds or LP units.

What’s the difference between them?

There are two ways to invest in the Deetken Impact Fund:

• Impact Bonds. Investors receive a fixed rate return over a defined term of 5 years and have their investment qualify for RRSP and TFSA accounts.
• LP Units. Investors receive variable annual distributions with a target of 6 to 7% p.a. in U.S. dollars and do not qualify for RRSP and TFSA accounts. 

The Ilu Fund aims to achieve a final of US$35 million in invested capital. The fund has already deployed US$ 21 million and has a clearly outlined strategy to complete this objective.    

Ilu’s Deployment Strategy outlines the following:

• Leveraging existing strategic partnerships with ABACO Cooperative, Pro Mujer, Optima, FINCA and Sustainable Energy Central America, and developing new strategic partnerships
• Maintaining the fund’s focus on the financial services and renewable energy sectors, using senior and subordinated debt complemented by no more than 10% equity.
• Increasing geographic diversification by entering the Caribbean region, and expanding its footprint in Central and South America including Colombia and Bolivia. 
• Managing risks by: excluding select markets (eg: Venezuela), limiting disbursement during election cycles and other periods of elevated uncertainty, requiring additional security and higher interest rates in countries with higher risk profiles, and using USD contracts and currency hedging
• Investment Screening Factors and Risk Scoring designed specifically for the Financial Services and Renewable Finance sectors
• Strong Investment Pipeline, identifying a number of potential projects for the fund

B Corp Score: 86.2 - Certified B Corporation

Impact Goals (based on the UN’s Sustainable Development Goals):

• Decent Work and Economic Growth (SDG 8)
• Affordable and Clean Energy (SDG 7)
• Gender Equality (SDG 5)
• Quality Education (SDG 4)
• Good Health and Well-Being (SDG 3)

Impact Creation:

The Ilu Women's Empowerment Fund acts as a partner and steward for its portfolio companies, each of which has been carefully selected for its contribution to one of five impact goals. Portfolio companies are also offered customized business advice and technology transfer designed to foster sustainable and durable business growth. By helping to grow this group of impactful businesses, the Fund drives increased business activity such as lending to micro and small enterprise, installation of new renewable energy capacity or greater outreach of health care services for low income women.

Deetken Impact supports the United Nations Sustainable Development Goals (SDGs). Specifically, investment opportunities and portfolio companies are evaluated based on their contribution to the following 5 SDGs: Good Health, Quality Education, Gender Equality, Clean Energy, and Decent Work & Economic Growth.

The Ilu Fund is managed by Deetken Impact, with offices in Vancouver, Canada, San Jose, Costa Rica and Lima, Peru. The Deetken Impact team brings significant asset management experience derived from their management of the Deetken Impact Pool (launched in 2008) as well as from past employment with some of Canada’s largest investment management institutions. In addition, each member of the Deetken Impact team brings specialist expertise in financial inclusion investments, with over 40 years of combined experience across emerging economies in Latin America and Africa. This experience has cemented in the Deetken Impact team a passion for investments that achieve both financial and social returns, as well as an understanding of the specific financial, operational and regulatory challenges faced by businesses which responsibly serve low income clients.

Deetken Impact has formed a joint venture with Pro Mujer, a provider of vital services to low income women, to together manage the Ilu Women’s Empowerment Fund. Deetken Impact and Pro Mujer share a mutual commitment to supporting women’s empowerment across all business activities, and to implementing investment management practices that empower women.

All private securities listed through online investment platforms and Exempt Market Dealers (EMDs) like SVX are likely to carry more risk than those available on the public markets. Our goal it to make you aware of those risks before making an investment. For further details on the risks in the private markets, refer to the SVX Risks section. Some of the offering specific risks have been identified below:

Country Risk
The Fund will invest in countries classified as transition or developing countries. These countries can be subject to a number of risks including political risk, the risk of economic recession, the risk of high or rapidly changing inflation rates and the risk of diplomatic changes. Companies from developing markets are generally subject to standards of disclosure, auditing / financial reporting practices and requirements regarding the provision of information which are not comparable with those of developed markets. Foreign investments may be subject to restrictions and controls of varying degrees which can increase the cost of the investment, delay investments or impede repatriation of capital.

Operational Risk
The companies, institutions, organisations and vehicles in which the Fund invests are often experiencing rapid growth. These entities sometimes face challenges in recruiting and retaining qualified staff and management. These entities may also have a limited track record. The Investment Manager will seek to mitigate this risk as much as possible by investing primarily in regulated or supervised institutions, conducting thorough due diligence prior to investment and monitoring existing investments closely.

Liquidity Risk
The Fund invests almost exclusively in assets which are unlisted and not traded on a regulated market. The investments, and ultimately the Fund, are therefore relatively illiquid. The valuation of these illiquid, unlisted assets may vary substantially from the value actually realised at the exit of the investment.

Management Risk
Loss of key personnel, especially with the Investment Manager, is an organizational risk. Loss of these personnel could have an adverse effect on the Fund’s ability to execute its investment strategy.

Currency Risk
The Fund will invest in securities denominated in U.S. dollars and this currency exposure will not be hedged against Canadian dollars. The Fund will invest in securities denominated in USD or in securities denominated in local currencies which are hedged into USD or CAD. The Fund may also take unhedged positions in local currencies where local currency appreciation is part of the investment thesis.

This type of investment has substantial risk. Investors should make an investment only if they are prepared to not receive any return on their investment and/ or to lose their investment in its entirety.