Private equity firm ACON Investments is seeking to raise $400 million for its latest Latin America-focused fund, with Dutch development bank FMO planning to commit capital at the vehicle’s first close, according to project documents seen by DevFiNews.
The fund is part of ACON’s goal to expand access to growth financing for mid-sized companies across the region.
The ACON Latin America Opportunities Fund VI-A, including potential parallel and side vehicles, will make control equity and structured equity investments in middle-market companies across Latin America.
The fund represents ACON’s sixth consecutive investment program dedicated to the region.
FMO said its proposed commitment is intended to support private-sector-led growth and job creation by increasing the availability of risk capital and structured financing solutions in a market where private equity penetration remains relatively low compared with more developed regions.
The development lender said access to structured capital remains limited for many mid-sized companies across Latin America, creating a financing gap for businesses seeking to expand operations, improve competitiveness, or pursue acquisitions.
By participating in the fund’s first close, FMO aims to play a catalytic role in attracting additional institutional and commercial investors, helping the fund reach its target size and broaden the availability of long-term capital for companies across the region.
Private equity activity in Latin America has historically lagged that of North America, Europe and parts of Asia, with fundraising cycles often challenged by economic volatility, currency fluctuations and political uncertainty.
Development finance institutions have increasingly stepped in as anchor investors to support fundraising efforts and crowd in private capital.
According to FMO, the fund will invest across a diverse range of sectors and will operate under an environmental and social management framework aligned with IFC Performance Standards.
The fund has been classified as Category B+ under FMO’s sustainability policy, reflecting moderate environmental and social risks associated with its investment strategy.
FMO said it will continue to engage with ACON on environmental, social and governance performance and identify opportunities to maximize development impact alongside financial returns.
The proposed investment underscores the growing role of development finance institutions in supporting private equity funds as a channel for mobilizing capital to underserved businesses across emerging markets.
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