Newsletter Second Edition

 

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
SECOND EDITION, 2012 JUNE 18, 2012
 
Transactions
  

CVF Capital Partners announced first close of its second mezzanine fund, Central Valley Fund II with US$121 in committed capital. Major investors for Fund II include CalPERS, Wells Fargo bank and Fondo de Fondos, the largest institutional investor in Mexico. CVF Capital provides private capital for small to mid-sized businesses with a focus on California's Central Valle in the United States. A priority of Fund II is to target the expanding Mexican population in the United States. The fund will invest in Mexican firms expanding into the US and firms in the US backed by Mexicans seeking growth opportunities in Mexico. (June 11, 2012). 

 

Southern Cross IV (SC IV) takes control of Planigrupo, the largest commercial real estate developer in Mexico. For over 35 years, Planigrupo has been involved in developing commercial complexes in the north, centre, and south of Mexico operating under names such as Plaza Real, Plaza Bella and Gran Plaza and housing brand names such as Texas based supermarket chain HEB. Southern Cross' investment was estimated at US$100 million and is the second acquisition of SC IV, which has US$1.7 billion in commitments. The fund's other portfolio company is Brazilian based Brinox Metalurgia S.A. (May 29, 2012).

 

Planigrupo raised MXP 2,475 million (US$179.4 million) through a CKD backed entirely by Mexican pension funds and insurance companies. The largest commercial real estate developer in Mexico, led by Elliott Bross, Planigrupo will commit an additional US$47 and co-investor Walton Street Capital US$28 million to pursue growth opportunities (May 21, 2012).  

Case Studies
 
EMPEA Impact Case GenomaLab Share PriceEMPEA's (Emerging Markets Private Equity Association) recently published case study on Genomma Lab, the largest Mexican pharmaceutical, highlights the impact created as a result of Nexxus Capital's involvement as financial sponsor (June 11, 2012). 
 
Snapshot
  • In 2004, Nexxus Capital invested US$ 17.75 million for a 30% position and harvested the firm with an IRR of 72.9% and a cost multiple of 18.5x.
  • Nexxus Capital helped Genomma Lab grow from a mid-sized company managed by a group of friends into a large, strategically focused and professionally managed public firm (US$596 million in revenues, 1,127 employees in Mexico and 278 abroad in 2011) which became the first Mexican pharmaceutical to list on Mexico's stock exchange in 2008.
  • Genomma Lab completed over 20 acquisitions during the partnership, expanded into 12 countries achieving market share leadership, and has received recognitions for its social responsibility and inclusiveness.
Industry Insights 
 
Preqin Special Report: Insurance Companies Investing in Private Equity. Read
 
The LP community is "fragmenting". According to Hamilton Lane's CEO Mario Giannini, a formerly unified LP universe is dividing based on those building customized accounts and those sticking to the traditional fund commitment route.  The partnership between The Blackstone Group and New Jersey's state pension system is an example of the shifting dynamic within the LP community (PEI, June 1, 2012). Read
 
Interview with middle-market specialist Brian Gallagher, Partner at Chicago based Twin Bridge Capital Partners. Brian Gallagher discusses the importance for private equity funds seeking capital from investors such as Twin Bridge to "have an angle" with each portfolio company invested. Watch at Privcap
 
Life After a Private Equity Deal: How Management and GPs Partner to Create Value. David Knoch, Head of Strategic Services, Senior Managing Director of Irving Place Capital and Anthony Zecca, Managing Partner, Cohn Consulting Group, share insight on managing a portfolio companyWatch Privcap Webinar
Top Headlines
 

Private Equity funds in Mexico made 25 investments in 2011 summing up to US$460 million, the expectation for 2012 is to see PE flows totalling US$1,000 million (Spanish, El Economista, June 12, 2012). Read

 

Mexico rises in the horizon: the country is gaining traction in Latin America's private equity landscape with the future prospect of consolidating as the second most important country in the region (Spanish, El Economista, June 8, 2012). Read

 

Mexican Pension Plans: could less risk be more risk? Afores could propel returns significantly for pensioners by allocating more assets to private equity funds (Spanish, El Financiero, June 12, 2012). Read

 

Security concerns not an impediment for investing in Mexico: CIPEF (Spanish, El Economista, May 16, 2012). Read

 

Film: a niche market for Mexican entrepreneurs (Spanish, El Empresario, June 13, 2012). Read

 

Macquarie fund to maintain focus on energy and transportation (Business News Americas, June 6, 2012). Read

 

Macquarie fund to invest up to US$10 billion in Mexican infrastructure in next 5 years (Business News Americas, June 5, 2012). Read

Real Estate & Infrastructure Headlines 

 

Housing credit in Mexico pikes up to 6.6% (Spanish, Mexican Business Web, June 6, 2012). Read

  

Mexican infrastructure market offers better investment value than Brazil's - Macquarie (Business News Americas, June 13, 2012). Read

 

Natural Gas Project will capture US$ 3,500 million (Spanish, Mexican Business Web, June 12, 2012). Read

 

Grupo Aeroportuario del Pacifico (GAP) will invest MXP 530 million. (Mexican Business Web, June 14, 2012). Read

Recent VC Event in Mexico
 
VC Summit 2012 GDL_Pitch
Participants of pitch session
3rd Venture Capital Summit in Guadalajara, Jalisco, Mexico, May 23, 2012.
 
AMEXCAP and NAFIN hosted the 3rd Annual VC Summit on May 23, 2012 in Guadalajara. Over 50 investors and 15 funds witnessed an event in which 11 firms in early and growth stage seeking capital made introductory "investment pitches". Please contact us for more information about the event.
 
We look forward in hearing from your success stories. Pleas reach out to rgranja@amexcap.com
 
Kind Regards,
 
AMEXCAP

Mexican Association of PE & VC Funds

Upcoming Events  
 

23rd Annual Venture Capital Investing Conference, June 19-20, 2012, San Francisco, CA 

 
The Rules of the Game in Mexico: Corporate Workouts and the Capital Markets, June 21, 2012, Mexico City
 
The 4th Annual SuperReturn Emerging Markets: 25 - 28 June 2012,  Geneva, Switzerland
 
2012 Real Estate & Infrastructure Summit, June 28, 2012, Mexico City
 
The 4th Latin America China Investor Forum (LatinFinance), Sep 11-12, 2012, Shanghai, China

 

 

LAVCA Annual Summit and Investor Roundtable, September 12-13, 2012, New York, NY