Newsletter 17th Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
17th Ed., October, 30, 2013
 
In this edition:
  • Transactions
  • Industry Insights: Overview of Mexico's VC Market
  • Recent AMEXCAP Events
  • Upcoming Third Party Forums
  • Industry Headlines
 
 
Transactions
  

Discovery Americas announces Global Initial Public Offering of Volaris.

Mexico City, September 29, 2013.- Discovery Americas announces the completion of the initial public offering of its portfolio holding, Controladora Vuela Compañia de Aviación, S.A.B. ("Volaris"), an ultra-low-cost airline based in Mexico; and a successful first week of trading.

On its first day of trading on September 18, 2013, Volaris ADS' (Ticker: VLRS) rose approximately 16.8%, to close at $14.01.  Subsequently, the IPO's underwriters exercised their overallotment option (the "Green Shoe") to purchase approximately 43.3 million additional shares of Volaris.  During the first week of trading, Volaris ADS' gained 21.1 %  (from the IPO price) to close at $14.53 (on Tuesday, September 24), which was the best 1 week performance among any of the Latin American IPOs completed in 2013 year to date. "Volaris, the company that Discovery Americas and three other partners started with a little less than $200 million in equity capital, has a post-IPO market capitalization of approximately $1,470 million as of Tuesday's close" said Harry Krensky, managing partner of Discovery Americas. "We are encouraged by the public markets reception to Volaris in its first week of trading." 

Discovery Americas has been part of Volaris since its inception.  Members of the Discovery Americas' team originated the idea for Volaris; and worked alongside Volaris management (led by CEO Enrique Beltranena) and Roberto Kriete's Blue Sky Investments to co-develop and co-manage its original strategy and business plan. Alongside these and other Volaris partners, including William Franke's Indigo Partners and a group of prominent Mexican individuals (led by Pedro Aspe), Discovery Americas has played important roles in Volaris' growth and development.  The Volaris Board of Directors includes Harry Krensky, Carlos Mendoza, Alberto Moreno and Dean Donovan.

Discovery Americas' funds remain the largest shareholder of Volaris with over a 20% collective ownership position.  Among our funds,  Discovery Americas CKD (ticker ADMEXCK); Discovery Air Investments, LP; Discovery Americas I, LP and Copernicus Investors, LP;  and Discovery Americas II, LP and Galileo Investors, LP all invested in Volaris. For more information about Discovery Americas, go to www.DiscoveryAmericas.com 

 

 

Central Valley Fund exits Ultra Gro Plant Food

September, 11, 2013.- The Central Valley Fund ("CVF") announced the exit of its investment in Ultra Gro Plant Food ("Ultra Gro") in Madera, CA. CVF supported a management led buy-out ("MBO") of Ultra Gro in 2008 by investing $3.35 million in Mezzanine Debt and Equity to assist management in financing the purchase from the company founders.

The long tenured MBO team - Don Parreira, Harold Peters, Steve Best and Craig Fourchy - saw the opportunity to take advantage of the company's strength in the market place and further grow its dedicated offerings in the fertilizer industry. Over the last five years the company continued to grow their product range, expand geographically throughout the California Central Valley and into Mexico, and grow its client base.

"The MBO gave Ultra Gro the opportunity to take full advantage of the expanded demand for fertilizer products in a strong commodity market. Thanks to continued internal and external investment in the product range, Ultra Gro has captured new market share and continues to expand its customer base domestically, and in Mexico", according to President, Don Parreira.

The MBO gave Ultra Gro the opportunity to focus fully on those new and existing clients and grow to meet their needs and requirements.

Ed McNulty, Partner at CVF, said; "Ultra Gro has become a market leader in specialty fertilizer in the Central Valley. The transformation of the business demonstrates our partnership with the management team and their hard work in creating a diversified business in a competitive market. We wish the business all the best in the future as it embarks on its next stage of growth".

About The Central Valley Fund: The Central Valley Fund was established in 2005 and to finance later stage growth and buy outs through mezzanine and preferred equity investments and manages over $140 million in committed capital. The fund has offices in Davis, CA and Fresno, CA. It is focused on making investments in California's Central Valley and throughout Western U.S. For more information, please visit http://www.centralvalleyfund.com.

 

 

Venture Partners México announced an investment in Médica Santa Carmen

(Spanish) Ciudad de México, septiembre 1, 2013.- Venture Partners México anuncia la inversión que hizo recientemente en la empresa Médica Santa Carmen SAPI de CV convirtiéndose en el principal inversionista de una ronda de inversión que asciende a MXN $12,750,000.

"Santa Carmen tiene un gran potencial en nuestro país y estamos orgullosos de incluir a dicha compañía a nuestro portafolio de inversión", comentó Federico Antoni, Cofundador de Venture Partners México.

Médica Santa Carmen es una red de centros de atención integral para pacientes con insuficiencia renal. La clínica del riñón brinda terapias de diálisis de ultima generación además de ofrecer consulta externa, análisis clínicos, atención pre y post-trasplante, nutrición, y educación para tratar y prevenir la insuficiencia renal. Operando desde diciembre de 2011, Santa Carmen ha realizado más de 16,000 tratamientos con una tasa de mortandad de cero durante las sesiones.

Hasta ahora, la compañía se ha financiado por completo con capital de los socios. "La suma levantada permitirá cuadruplicar el acceso a los pacientes", dijo Andrés Gutiérrez, Fundador y Director General de Santa Carmen. Esta ronda de financiamiento permitirá que las Clínicas II y III, ahora en construcción, abran a finales de año.

Venture Partners México es un fondo pionero en inversiones de capital emprendedor que invierte en empresas de alto impacto en el país. Al día de hoy, el fondo ha realizado once inversiones en los sectores de movilidad, comercio electrónico, servicios financieros y de salud. Venture Partners México fue fundada y es liderada por Fernando Lelo de Larrea y Federico Antoni.

Industry Insights
 

  

Overview of Mexico's Venture Capital Market - October 2013 by AMEXCAP

 

Over the past four years, the Venture Capital Industry in Mexico has grown significantly: Fundraising activity reached a record high in 2012: US$223 million committed to seven VC funds. From 2009 to 2013 the number of annual transactions increased by ~6 times.  

 

Download the report and gain access to the recently released report by AMEXCAP highlighting the current landscape of the VC Industry in Mexico. Go to report: here

 

Please visit AMEXCAP's new website and access private content available exclusively for members of the association:  www.amexcap.com 

Recent AMEXCAP Events
 

  

AMEXCAP's Members only forum, September 3, 2013

For the second consecutive year, AMEXCAP hosted a forum exclusive for members of the association titled: "Actualizacion de Capital Privado para Administradores" which focused on addressing current trends and challenges in the private equity market along the main stages of a fund's cycle. 

 

Download a summary of each panel presented by leading practitioners in the areas of fundraising and institutional investor asset allocation strategies, corporate and fiscal law, financial services, strategic and operational management. 

  

Go to AMEXCAP's members only content and access the report. Link to content

 

 

Mexico VC Day San Francisco: An Update on Mexico's Venture Capital Industry, October 17, 2013

AMEXCAP is pleased to announce that on October 17, 2013 the association hosted the first Venture Capital Day in San Francisco, bringing together over 130 participants: general partners, institutional investors, specialist service providers, policy makers, and industry players from Mexico and the United States to discuss opportunities and challenges for investment in the Mexican Venture Capital industry. 

 

Gain access to available presentations on the following link: Link to content

 

 

Presentation: The Impact of Private Equity for Businesses in Mexico: 17 Success Cases

On October 2, 2013, AMEXCAP and KPMG brought together over 60 top executives from private companies in Guadalajara to present the results of a recent KPMG study of 17 private equity success cases in Mexico. The three hour conference featured a couple of keynotes followed by a panel comprised of CEOs sharing their view on the sources of value that a strategic-financial investor can bring to the table to accelerate growth and strengthen businesses.

Upcoming Third Party Events:
  

 

BP- XPRESS Taller de Planes de Negocio, by Angel Ventures Mexico

Date: 6 and 7 of November from 8:30a.m. to 2:00 p.m.

Venue: Auditorio Antonio Ortíz Mena, NAFIN

More information: link

 

 

IV Foro de Capital Emprendedor Edición Bajío

(Spanish) NAFIN en conjunto con instituciones y patrocinadores del ecosistema de capital emprendedor realizarán el IV Foro de Capital Emprendedor - Edición Bajío en la ciudad de Querétaro.

Fecha: 13 de Noviembre

Hora: 8:00 hrs

Lugar: Hotel Hacienda Jurica, Querétaro / Paseo Jurica esq. Paseo del Mesón s/n Fracc. Jurica

Mayor información: link

 

 

INC Mty

(Spanish) El Tecnológico de Monterrey presenta IncMty, iniciativa llamada a convertirse en la mayor celebración de la innovación y emprendimiento en Latinoamérica, y en plataforma de lanzamiento para las ideas, experiencias e invenciones más creativas.

Fecha: 15, 16 y 17 de noviembre

Lugar:  Tecnológico de Monterrey, Campus Monterrey.

Mayor información: link

 

 

MITA Conference on Innovation & Technology

(Spanish) Asiste a las MITA TechTalks 2013, el evento tecnológico y de Venture Capital más importante del año en toda América Latina. 

Fecha: 18-21 de Noviembre, 2013

Lugar: Punta Mita, México

 

El MITA Institute le extiende una coordial invitación para participar en su conferencia anual MITA TechTalks 2013, a celebrarse del 18 al 21 de Noviembre en Punta Mita, y ofrece una tarifa especial para los miembros de Amexcap. Para completar su registro visite:http://mitainstitute.com/techtalks/ 

Mayor información: link

 

Mexico's PE, VC & RE Industries in the news
  

 

Recent article on the growth of Mexico's Private Equity Market, by el Financiero

October 29, 2013. Link to article: here

 

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Kind Regards,
 
AMEXCAP

Mexican Association of PE & VC Funds