Adobe Capital announces its exit from NatGas Queretaro, SAPI de CV, a fast-growing leader in the Mexican vehicular natural gas sector
Adobe Capital’s investment in NatGas was completed in 2014 through its flagship impact investing fund (Adobe Social Mezzanine Fund I) in order to support the Company’s early growth and generation of strong social and environmental externalities. Through the conversion of taxicabs and public city buses from regular gasoline to natural gas use, NatGas provides end-users with 50%+ fuel cost savings, while reducing CO2 emissions into the atmosphere.
Over the 2+ years that Adobe Capital was a shareholder, the Company was able to convert more than 2,500 vehicles and reduce CO2 emissions by approximately 150 tons.
Adobe’s tailored investment structure combined a royalty-based mezzanine loan, in addition to an investment in the Company’s equity. This innovative structure allowed NatGas to fund its projected growth without incurring such a high equity dilution.
This investment also corroborates Adobe Capital’s underlying investment thesis whereby a genuine social and/or environmental impact can drive strong risk-adjusted returns.