Newsletter 19th Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
19th Ed., December 19, 2013
 
In this edition:
  • Upcoming AMEXCAP Events: 9th Annual Summit

  • Industry Insights: Reports and executive briefings from: EY, Preqin and Privcap
  • Transactions

  • Legal and Regulatory Topics

  • Mexico VC Day Conference Highlights

  • Recent AMEXCAP Events
  • Upcoming Third Party Events


 

Upcoming AMEXCAP Events


  

AMEXCAP's 9th Annual Private Equity, Venture Capital, Real Estate and Infrastructure Summit 

Please Save the Date for: March 26-27, 2014

Location: Four Seasons Hotel, Mexico City  

  

AMEXCAP proudly invites you to the most important Private Equity forum in Mexico. There will be over 60 sector-specialist panelists, who will give an insider view of the PE, VC, Real Estate and Infrastructure ecosystem.

 

During its 2013 edition, the Summit brought together 477 total participants, which were a mixture of: 

  • Academic Institutions
  • Accelerators / Incubators  
  • Entrepreneurs
  • Financial Services Intermediaries 
  • General Partners  
  • Government Institutions 
  • Investors
  • Specialized Private Equity Advisors
  • Strategic Allies
Industry Insights
 

 

"The EY G20 Entrepreneurship Barometer 2013"by EY.
The EY G20 Entrepreneurship Barometer 2013 introduces a model for scoring countries across pillars of entrepreneurship. In this report, Mexico scores highly in the "coordinated support" pillar.
 

Venture Capital in Mexico:

In an entrepreneur survey conducted in Mexico: 42% list venture capital as one of the three most important funding instruments for improving the long-term growth of Mexican entrepreneurship.

 

The Mexican Government's support for funding access:

The Mexican Government developed over 100 financing schemes. For example, regulatory reforms have enabled Mexican pension funds to invest greater sums in the VC sector. More recently, the Government has launched a new seed capital venture with US$22m of public sector funding available for co-investment with the private sector in early-stage businesses. 

 

Read the full report here

 

 

 

"Private Equity Roundup Mexico", by EY. 

This report examines the drivers of fund-raising, investment activity and exits.

 

Fund-raising:

In 2012, PE funds focused on Mexico raised US$1.3b, an increase of nearly 75% from the US$762m raised in 2011. Funding for Mexico's PE funds has come from three sources: foreign institutional investors, local family offices and government institutional investment.

- According to research firm WealthInsight, there are currently nearly 150,000 high-net-worth individuals (HNW) in Mexico, with collective assets of US$736b. Moreover, those assets are expected to reach US$1.1 trillion as early as 2017.

- Fondo de Fondos has more than US$605m under management and has invested in nearly 50 separate partnerships. It expects to make commitments to 20-30 additional funds over the next four years.

 

Acquisitions:

Since 2007, there have been more than 140 disclosed PE investments in Mexico, with an aggregate value of US$5.8b. To date in 2013, PE firms have announced 18 deals with a combined value of US$1.1b, which puts the year on track for a 36% increase over last year.

 

Exits:

Over the last six years, PE firms have achieved at least US$1.4 billion in exited value in Mexico.

 

Read the full report: here

 

 

 

"Sovereign Wealth Funds Special Report", by Preqin.

Know more about this vital source of capital, which has reached a total of: US$5.38tn of assets under management in 2013. 

 

The Report gives an overview on how sovereign wealth funds are investing in:

  • Private equity: 51% of sovereign wealth funds are known to invest in private equity. Over two-thirds (72%) of sovereign wealth funds investing in private equity have a preference for VC vehicles.
  • Real estate: they allocate a total of more than US$180bn to the asset class. 54% of all these sovereign entities currently invest in the asset class.
  • Infrastructure: 57% of all sovereign wealth funds currently tracked by Preqin are known to actively invest in the infrastructure asset class.
  • Hedge funds: are utilized by a relatively small proportion of sovereign wealth funds; 31% of these investors currently have an allocation to the asset class.
 

Read the Preqin Special Report: Sovereign Wealth Funds here.

 

 

 

"PE Fundraising Survival Guide" by Privcap.

In this executive briefing, expert panelists: Mounir Guen, CEO, MVision; Hussein Khalif, Partner, MVision; Muhannad Qubbaj, Managing Director, Gulf Capital and Lina Russo, Partner, MVision give advice about Private Equity fundraising fundamentals such as:

 

1. Emerging managers need vision and focus

2. Want to impress LPs? Show a pipeline, do a deal

3. Investors can forgive bad luck, but not bad investment processes

4. Downplaying bad deals makes the situation worse

5. When adding new strategies, don't look like an "asset gatherer"

 

Read the full briefing here

 

Subscription to Privcap for AMEXCAP members:

AMEXCAP is pleased to offer its members an exclusive 20% discount for a subscription to Privcap, provider of in-depth interviews and panel discussions with leading private capital experts on critical topics. Subscribe with AMEXCAP discount: here.

Transactions
 
(Spanish):

Gerbera Capital invierte en Soccerly.com

México DF, 17 de diciembre 2013

Gerbera Capital Venture Equity Fund ha liderado una ronda de inversión en la que también participó el Fondo México Ventures I en Soccerly.com, portal especializado en contenido de futbol soccer enfocado en el mercado de los Estados Unidos. 

Soccerly.com, lanzado en enero de 2013, busca consolidarse como la plataforma digital preferida de los aficionados en Estados Unidos para seguir el acontecer mundial del futbol soccer, el deporte que más crece en el mercado americano.

Alonso Díaz Etienne, Socio Director de Gerbera Capital comentó "Estamos convencidos que la oportunidad que representa Soccerly.com como medio digital especializado en el mercado de Estados Unidos es muy atractiva. Además, Soccerly.com tiene un equipo emprendedor de primer nivel que ya ha demostrado su capacidad de ejecución y con quienes esperamos meter muchos goles juntos!". 

Miguel Ramírez Lombana y Patricio Villalobos, co-fundadores de Soccerly dijeron "La inversión de Gerbera y Mexico Ventures será de gran valor para nuestro proyecto ya que podremos acelerar nuestro crecimiento y enfocarnos en la ejecución para aprovechar al máximo la gran oportunidad que vemos en el mercado americano".

Gerbera Capital es un administrador de fondos de inversión de Capital Privado y es socio de AMEXCAP. Actualmente, administra tres fondos inmobiliarios, un fondo de capital emprendedor y una plataforma de análisis y gestión de portfolios globales.

México Ventures I es un Fondo de Fondos de capital emprendedor co-gestionado por Sun Mountain Capital y la Corporación Mexicana de Capital Privado (CMIC).

Para más información acerca de Gerbera Capital, visite: www.gerberacapital.com   

 

 

Newgrowth Fund announced an investment in Bodaclick SA.

Mexico City, December 6th, 2013 - The Mexican growth capital fund "Newgrowth Fund" announced an investment, through convertible debt, in Bodaclick SA; and online vertical focused on social events with presence in 8 countries. The resources will be used to fund continued growth in Mexico and Latin America. Terms of the deal were not disclosed.

For more information about Newgrowth Fund, visit: www.newgrowthfund.com/

 

 

Venture Partners Mexico announced a syndicated round of MXN$13 million to invest in Petsy.

Mexico City, December 3rd, 2013 - Venture Partners Mexico, as lead investor and hand in hand with Capital Invest and Dila Capital, announced a syndicated round of MXN$13 million to invest in Petsy (USD$1 million as of September, 2013). Petsy is the dominant pet care e-commerce platform in Mexico that has gained unprecedented traction by offering exceptional customer service.

For more information about Venture Partners, visit: venturepartners.vc

Legal and Regulatory Topics

 


Basila Abogados sends a document for AMEXCAP Associates about the changes that will take place with the Mexican Financial Reform. On November 2013 a decree was approved to modify some articles and details of the following Mexican regulations:

  • Mexican Securities Market Law (Ley del Mercado de Valores), 
  • Investment Company Act (Ley de Sociedades de Inversión),
  • Law for the Protection and Defense of Financial Services Users (Ley de Protección y Defensa a los Usuarios de Servicios Financieros).

The full report is available exclusively for Associates, in AMEXCAP's website. Please click here.

Mexico VC Day Conference Highlights
  

   

Overview of the Mexican Venture Capital Market, presentation by Alex Rossi, during the Mexico VC Day.

Alex gives an overview of the Venture Capital industry in Mexico, based on a report conducted by AMEXCAP. He mentioned that fundraising reached a record high in 2012 with US$223 million. Currently VC assets under management in Mexico reach US $ 530 million. He also covered several topics, such as: deal flow, transactions, industry sectors and a five-year projection of the Mexican PE and VC industries.

Read the full article here.

 

 

NAFIN's Role in Developing the Mexican VC Industrypresentation by Felipe Vilá, Fund of Funds CEO.

Felipe gave an overview of the Mexican economy and of the Mexican PE and VC ecosystems. Since 2010, Fund of Funds has been launching several funds in the different stages of the capital formation chain. First they launched Mexico Ventures, focused in VC and early stage company investments. In 2013, they launched a seed capital fund of almost $450 million pesos. Finally, Felipe made the exclusive announcement that in 2014 Fund of Funds will launch a fund specialized in mezzanine finance. 

Read the full article here.

 

Mexican Entrepreneurs Supported by VC Firms

In this panel, entrepreneurs from VC-backed companies such as: Carrot, Cúrsame, FINAE, MiCel, Ooyala and Yellow Pepper, speak about the benefits of partnering with VC funds. Each of the entrepreneurs gave an overview of their companies; spoke about the challenges they face; the possibilities their companies have of expanding to Latin America and gave advice for future CEOs on how to become successful entrepreneurs.

Read the full article here

 
Recent AMEXCAP Events
  

  

AMEXCAP's Tax Reform Roundtable

AMEXCAP organized this Tax Reform Roundtable, exclusively for its Fund Manager members to update them in the tax changes which will be applied on January 1st, 2014. 

The Firm Chevez, Ruiz, Zamarripa delivered a conference, followed after a roundtable for questions, with the presence of the firms: Ortiz, Sosa, Ysusi y Cia; Turanzas, Bravo y Ambrosi and Chevez, Ruiz, Zamarripa.  

 

Chevez, Ruiz, Zamarripa's presentation is available exclusively for Associates, in AMEXCAP's website. Please click here.

Upcoming Third Party Events
    
 
9a Cumbre Financiera Mexicana, organized by Latin Finance

 

Date: March 6th, 2014

Location: Four Seasons, Mexico City.

This preeminent capital markets forum brings together leading corporate issuers, growth companies, sub-national borrowers, local and international investors, regulators and bankers for a full day of informative presentations and private 1-1 meetings.

 

GPs and LPs of AMEXCAP member firms can register at no cost through December 31st, 2013.

All other AMEXCAP Affiliates can register with a 33% discount through this invitation.  

After December 31st, 2013 all AMEXCAP GPs, LPs and Affiliates can register with a 33% discount.

 

RSVP with AMEXCAP discount HERE 

 

Event page HERE 

 

LatinFinance contact:
Lily Costa
Events Marketing
+1 (305) 428-6281  

lcosta@latinfinance.com

If you would like to share a story, please reach out.
 
Kind Regards,
 
AMEXCAP

Mexican Association of PE & VC Funds
 
Featured Upcoming AMEXCAP Events

 



AMEXCAP's 9th Annual Summit
 
Date: March 26-27, 2014  
 
Location: Mexico City
 
Stay tunned for more details.