Newsletter Third Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
THIRD EDITION, 2012 JULY  2, 2012
 
Transactions & Deal flow
  

 

Northgate Capital, the private equity fund of funds firm managing approximately US$4 billion in assets, made a public offering statement at the BMV (Mexican Stock Exchange) announcing the firm's intent to raise approximately US$500 million (MXP 7,000 million) through a CKD. The funds will be invested in parallel to Northgate Mexico, L.P. - a Canadian vehicle, in private equity funds operated by local (Mexico) General Partners. In addition, the vehicles will make direct private equity and venture capital investments in Mexican companies. Northgate Capital was founded in the year 2000 by former National Football League (NFL) players and venture capitalists in the United States Mark Harris and Brent Jones. The firm has raised nine funds with over US$2.5 billion in commitments and is in the process of raising three additional funds (June 29, 2012).

Latin American focused fund Southern Cross agrees to invest in Estrella International Energy Services Ltd. (Estrella)Estrella announced that it has executed a definitive investment agreement with Ringo Holding L.P., a subsidiary of Southern Cross Latin America Private Equity Fund IV, L.P. for a total of CAD$25,000,000, amount that will yield a controlling stake of the firm to Southern Cross IV. Founded in 2001 and headquartered in Argentina, Estrella is a South American firm rapidly expanding in the oil and gas industry throughout Latin America. Estrella's insiders includes ownership by New York based Medley Capital (June 26, 2012).
 
The PYME fund of the Mexican Ministry of the Economy (Secretaria de Economia), announced financial support to nine companies as part of the "Mercado de Deuda" Program of 2012. The PYME fund, which provides favorable financing to Mexican firms seeking support to speed up their corporate governance and managerial practices in order to issue debt through the BMV (Mexican Stock Exchange), announced that the following nine companies will be recipients of the funds available as part of the 2012 "Mercado de Deuda" program:
  • Construcciones MS, SA de CV
  • Ercus, SA de CV
  • Especias Naturales de México, SA de CV
  • Idear Electrónica, SA de CV
  • Merkacommerce, SA de CV
  • Promotora de Vivienda San Vicente, SA de CV
  • Rubio Pharma y Asociados, SA de CV
  • Seiton de México, SA de CV
  • Vidrios Marte, SA de CV
 
In the year 2011, the "Mercado de Deuda" program supported the following ten companies, two of which might issue public debt in Q3 or Q4 of 2012:
  • 4e de Mexico S.A. de C.V.
  • CELSOL, S.A. DE C.V.
  • Doc Solutions de México, S.A de C.V.
  • Inmobiliaria Insurgentes 553, S.A. de C.V.
  • Mármoles Arca, S.A. de C.V.
  • Minera Rio Tinto S.A. DE C.V.
  • Operadora de Clubes San Angel S.A. de C.V.
  • Salsas Castillo S.A DE C.V.
  • Santa Maura Importaciones México SAPI de CV
  • Toptel, S. DE R.L. DE C.V.
 

 

Recent Events
 
RE Market Mexico - 2012 RE & Infra Summit
Source: Real Capital IM
Real Estate & Infrastructure Summit 2012, June 28, 2012.AMEXCAP, ULI and IMEF partnered to host the 2012 Real Estate and Infrastructure Summit at the Four Seasons Hotel in Mexico City, gathering over one hundred participants including advisory services providers (31%), developers and project managers (26%), private equity funds (13%), financial services (10%), associations (8%), corporations (7%), public authorities (3%), and pension plans (2%). Highlights include:
  • Real Estate investments in Mexico from 1999-2012 totalled US$15.2 billion, according to Blanca Rodriguez, Managing Partner at Real Capital IM; 58% of which came from the United States and Canada and 22% from Mexican limited partners. Actual investments were diversified as follows:
    • 40% dedicated to the industrial segment
    • 35% invested in retail
    • 20% invested in the housing sector
    • Remaining 5% in other sectors (mainly hotels)
    • 40% of total investment in the northwest and northeast of the country
    • 25% in Mexico City and surroundings
    • 25%+ in the West, Bajio, the Gulf of Mexico and the Center
  • Real Estate fundraising in Mexico for the next couple of years, according to Jorge Combe, VP of Investment Banking at Goldman Sachs in Mexico, is estimated at US$3 billion and the sector might exhibit four public offerings (CKDs and FIBRAS).
  • Presentations can be downloaded following this link
Industry Insights 
 

Reports

 

Coller Institute's Private Equity research findings on the risk return profile exhibited per fund strategy highlights the imperative behind selecting top quartile GPs, and even more if engaged in early-stage investing. Read findings

 

Coller's Risk Return

 

Interviews

 

LAVCA interviews EMX co-founder Joaquin Avila. Joaquin Avila, Senior Managing Director & Co-Founder of EMX Capital spoke to LAVCA about his experience spinning out from a globally-recognized firm and finding PE opportunities in Mexico. Read

 

Sourcing Deals in an Increasingly Networked World (AxialMarket, June 21, 2012). In this video, Peter Lehrman, CEO of AxialMarket discusses the evolution of the web from early messaging through consumer e-commerce transactions and then to recent commercial transactions on networks like Loopnet, Linkedin and AxialMarket, platforms which are ultimately leading into more relevant business connections and specialized networks.Watch video

 

Private Equity is powering pension plans, an interview with Hamilton Lane's Chief Investment Officer, Erik Hirsch.Watch interview

 

 

 
Private Equity, Real Estate & Infrastructure News
 

 

Infrastructure in Mexico maintains stable growth (July 2, 2012).Read news

 

Mexico's Banobras has raised MXP 2 billion (US$ 150 million) in the domestic bond market (July 2, 2012). Read news

 

Sectors that create investments. There are currently around US$5,000 million in private capital committed to real estate and infrastructure investments in Mexico (June 29, 2012). Read news

 

Pedro Aspe, General Director of Protego Asesores, anticipates a FIBRA issuance in 2012 (June 28, 2012). Read news

 

Mexico captures US$100 million of FDI from the UK (June 28, 2012). Read news

 

Mexico Beckons for some emerging market investors (June 28, 2012). Read news

 

Infrastructure, a bridge to economic development in Mexico (June 28, 2012). Read news

 

S&P anticipates economic stability in Mexico, regardless of electoral results (June 28, 2012). Read news

 

Housing market in Mexico will surpass 2012 performance - BBVA research findings (June 26, 2012). Read news

 

Latin America has what China needs (June 22, 2012). Read news

 

Latin American renewable energy projects: too good to miss for investors (June 22, 2012). Read news

 

If you would like to share your story please reach out to rgranja@amexcap.com
 
Kind Regards,
 
AMEXCAP

Mexican Association of PE & VC Funds

Upcoming Events AMEXCAP-Sponsored
 
The 4th Latin America China Investor Forum (LatinFinance), Sep 11-12, 2012, Shanghai, China
20% discount to AMEXCAP members

 

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

 

20% discount to AMEXCAP members

 

The Latin America Korean Investor Forum, Sep 14, 2012, Seoul, Korea  

 

 

20% discount to AMEXCAP members