Newsletter Eight Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
EIGHT EDITION, 2012 NOVEMBER 16, 2012
 
Transactions & Headlines
  

 

 

Alta Growth Capital announced that Javier G. Teruel and Javier Garcia-Teruel, co-founders of Spectron Desarrollo, agreed to join forces with Alta Growth Capital in Mexico. Founded in 2006, Alta Growth Capital is a leading private equity firm focused on growth equity investments in middle market companies in Mexico. Javier G. Teruel joins Alta Growth Capital as Chairman. Most recently, he has been engaged in private equity investments at Spectron since its founding in 2007. Prior to co-founding Spectron, Mr. Teruel had a long and distinguished career with Colgate Palmolive occupying several leadership positions within the firm and culminating his career as Vice Chairman worldwide before retiring. Javier Garcia-Teruel joins Alta Growth Capital as a Managing Director. Since 2007, Mr. Garcia-Teruel has led multiple private equity investments in Mexico at Spectron, including an investment in La Loma, a provider of ice cream mix and dairy products for bakeries. Prior to that, he worked several years in management consulting with McKinsey & Company after receiving his MBA from Harvard Business School. (November 13, 2012).
 
Credit Suisse raised about US$420 million through a CKD for its Mexico Credit Opportunities Trust.  Credit Suisse said it will seek to capture opportunities presented by structural inefficiencies in the Mexican credit market through investments in a diversified portfolio of alternative assets with debt-like characteristics. According to public fillings, the trust will be managed by a team based in Mexico and New York led by Andres Borrego, who was previously in the bank's Emerging Markets Group. He will be joined by Manuel Ramos, formerly head risk manager and trader for the LatAm Financing Group, also in the investment banking division (November 1, 2012).

Nexxus Capital announced the Initial Public Offering of Crédito Real (Ticker:CREAL) whose shares were placed at a price of Ps. 22.00 per share, equivalent to US$1.72, on the Mexican Stock Exchange for an aggregate offering value of approximately US$173.6 million.  On November 2007, Nexxus Capital, through Nexxus Capital Private Equity Fund III, L.P. (Nexxus III) acquired a strategic position in Crédito Real, S.A.B. de C.V., S.O.F.O.M., E.N.R ("Credito Real" or "The Company"). Credito Real is a leading financial company in Mexico, with a focus on consumer lending and a diversified business platform focused on attending the large and undeserved sector of the population by traditional banks. On October 17, 2012, Nexxus Capital proudly announced that Credito Real placed its shares on the Mexican Stock Exchange, and were distributed to institutional investors in the U.S. under Rule 144A and investors elsewhere under Reg S. The shares were placed at a price of Ps. 22.00 per share, equivalent to US$1.72. At such price, the aggregate value of the offering was Ps. 2,222 million pesos or approximately US$173.6 million, not including the over allotment options granted to the underwriters by the Company. Of the total offer, 27.21% was secondary and 72.79% was primary. As part of the secondary portion of the offering, Nexxus III sold 18,500,000 shares, equivalent to 33.7% of the shares that it owned prior to the offering. After the offering, Nexxus III has a 9.72% interest ownership in Crédito Real, subject to the exercise of the over allotment options. At the offering price of Ps. 22.00 per share, considering realized and unrealized portions, Nexxus III gross multiple of cost is 3.8x. Founded in Mexico in 1995, Nexxus Capital is a leading Mexican Private Equity fund manager focusing on mid-market growth and buyout transactions that has delivered above the region average, unleveraged investment returns to investors. The firm has raised five funds with US$652 million in commitments and has listed four companies on the Mexican Stock Exchange (one in NYSE) (October 17, 2012).

Recent Events
 
Latin America Forum: On November 1, the BVCA. in partnership with AMEXCAP and ABVCAP, presented "Private equity and venture capital in Latin America". The event brought together general partners, institutional investors, specialist service providers and policy makers from Latin America and Europe to discuss opportunities and challenges for investment in the region. To download speaker specific presentations visit the  event website and follow these links:
  1. KPMG Mexico Private Equity Case Studies - Sources of Value Creation: link
  2. Brazilian Development Bank - The Brazilian Economy and the PE & VC Industry: link
Please reach out to access the list of attendees.
 

Third Annual Venture Capital Forum - Mexico City, November 7, 2012. 

AMEXCAP, in collaboration with NAFIN, hosted the third annual VC Forum in Mexico City. As part of the forum, a panel on funding alternatives through the Mexican Government provided a snapshot on programs supporting innovation and entrepreneurship. Download funding programs: link

 

Private Equity Roundtable with Lord Mayor of the City of London and Aberdeen Asset Management. On October 16, AMEXCAP and the British Embassy in Mexico, hosted a private equity roundtable with Lord Mayor of the City of London and Alex Barr, Head of Private Equity at Aberdeen Asset Management. The conversation featured an overview of Mexico's private equity market and a view of opportunities and challenges for investing in Mexico from the perspective of a Scottish investor. The inclusion of a private equity segment during Lord Mayor's visit to Mexico underscores the growing importance of the industry and the UK's interest in strengthening trade relations. Follow this link to download Aberdeen's presentation: link

 

Upcoming Events
 

 

Closed-doors introductory pitch session.  On December 6, 2012, the Monterrey Tec (ITESM) Santa Fe Campus will host a closed-doors pitch session for AMEXCAP member funds in which a variety of entrepreneurs will present their businesses (from start-ups to small-sized companies) in an effort to seek financial / strategic sponsors. Please save the aforementioned date from 6pm to 8pm and RSVP by reaching out to AMEXCAP.

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

Mexican Association of PE & VC Funds

Upcoming Events

 

 

Introductory Pitch Session for AMEXCAP GPs at Monterrey Tec (ITESM) Santa Fe 
December 6, 2012