Newsletter Seventh Edition

AMEXCAP
AMEXCAP Newsletter - Exclusively for Members
SEVENTH EDITION, 2012 OCTOBER 1, 2012
 
Transactions
  

 

500 Startups announced an investment in nine additional technology companies in Mexico. This latest round of investments means that 500 Startups now owns stakes in 16 Mexican companies through its Mexican subsidiary, Mexican.vc. According to VentureBeat.com, 500 Startups partner Santiago Zavala said that each of the companies would receive a $25,000 cash investment in addition to workspace and other services, including a startup bootcamp, in exchange for a 10% equity stake; a venture capital ownership and acceleration model popularized by Y Combinator in the United States. Ventures receiving capital from Mexican.vc focus on utilizing Web 2.0 as a means to solving problems in Mexico and North America. 500 Startups is an early-stage seed fund and incubator program located in Mountain View, CA. The firm invests primarily in consumer internet startups and related web infrastructure services. Their initial investment size is typically $25K-$250K. Selected areas of interest include financial services & e-commerce, search/social/mobile platforms, personal & business productivity, education & language, family & healthcare and web infrastructure. Mexican.VC, an investment firm with an accelerator program that funds scalable internet startups that have potential to grow quickly and sustainably, operates as the subsidiary of 500 Startups in Mexico. (September 28, 2012).

 

EMX Capital completed the subscription of a majority equity stake in A.G Convertidora S.A. de C.V. ("AGC") through its investment vehicle Fomento Convertidor International, S.A.P.I de C.V. AGC is a leader in the Mexican flexible packaging industry and is known for its high quality products, innovation and exceptional commitment to customer service. AGC has a recognized client roster and operates state-of-the-art facilities. AGC's management team, which has more than 50 years of experience in the sector, will continue to adhere to the highest international quality standards. EMX's investment will be used for working capital needs and will allow AGC to acquire additional equipment, to develop its dynamic product pipeline and to strengthen its client relationships. EMX will actively support this growth plan and will work to further institutionalize AGC.

EMX Capital is a private Mexico-focused investment firm centered on growth equity and leveraged buyout transactions. EMX Capital manages approximately $151 million in committed capital through its investment vehicles. EMX Capital has successfully acquired a majority stake in ILSP Global and AG Convertidora (September 19, 2012).

 

 

Nexxus Capital announced an investment in Modatelas. Nexxus Capital IV ("Nexxus IV") and Nexxus Capital Private Equity Fund V, L.P. ("Nexxus V"), funds managed by Nexxus Capital, announced that they have made an investment for a 29.41% ownership in Modatelas.  Modatelas is a leading specialty retail chain of fabrics, haberdashery, home décor, and arts & crafts, with a network of 232 stores located mainly in Mexico. This is the fifth investment that Nexxus Capital has executed through its funds Nexxus IV and Nexxus V. The previous four investments are Taco Holding, Moda Holding, Price Travel, and Maak Holding. 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 three companies on the Mexican Stock Exchange (one in NYSE) (August, 2012).

 

 

Recent Events
 
Private Equity Forum for Fund Managers (AMEXCAP Members-only Networking Series). On September 25th, 2012, AMEXCAP hosted the first edition of an exclusive event for its members where leading advisory firms examined current challenges and opportunities in the following topics:
  1. M&A activity & opportunities in Mexico
  2. Alternative financing options for small and mid-sized firms (SMEs)
  3. Limited Partnerships, changes and critical elements: CKDs vs. L.P.
  4. Exit opportunities through the Mexican public market
  5. Valuation & Reporting: CKDs vs. L.P.
  6. Relevant aspects in fund formation: CKD vs. L.P.
  7. Legal advisers: critical elements in the structure of CKDs

For a brief on panels 1 and 2 of the event follow this link: Download

Briefs on panels 3 to 7 will be available in the following newsletters. 

 

LAVCA Summit & Investor Roundtable (Sep 11-13, NYC): follow this link to access the full list of attendees (including LPs): Download

 

Reports & Insights 
 
Chadbourne & Parke on "Forming Private Equity Funds": Scott W. Naidech, Partner at CHADBOURNE & PARKE LLP, examines some of the core considerations involved in forming private equity funds in the United States, with a focus on fund structure and commonly used economic agreements. Download report
Upcoming Events & Programs
 

 

BVCA's International Series - Latin America: Private equity and venture capital in Latin America, November 1, 2012, London, UK.  The BVCA is working in partnership with the Mexican Association of PE & VC Funds (AMEXCAP), the Brazilian Private Equity & Venture Capital Association (ABVCAP) and sponsors to bring together general partners, institutional investors, specialist service providers and policy makers from Latin America and the UK to discuss opportunities and challenges for investment in the region. Following the success of the Brazil Forums in 2010 and 2011, this year's event will encompass the Latin American region as a whole and will offer the opportunity for members of the BVCA, AMEXCAP, and ABVCAP to engage with new contacts and cement existing relationships.  The Forum will bring together GPs and institutional investors from Western Europe and a delegation from the region. Mexican GPs and service providers to the industry (AMEXCAP members) interested in participating (fee waived) please contact rgranja@amexcap.com.

 
12th Annual Super Investor 2012, November 6-9, Paris, France. SuperInvestor is amongst the SuperReturn series of leading private equity events which brings together 900 LP/GP attendees over 4 days. The event is the largest and most prestigious LP GP relations conference worldwide. AMEXCAP members interested in attending please contact rgranja@amexcap.com. Link to event website
 
Third Annual Venture Capital Forum - Mexico City, November 7, 2012. 

AMEXCAP, in collaboration with NAFIN, is proud to host the third annual VC Forum in Mexico City; an event where high-impact entrepreneurs, businessmen, funds, investors and organizations , meet to share initiatives, proposals and create new partnerships within the Mexican Venture Capital ecosystem.

  

Save the date:

Wednesday,  November 7, 2012

 

From 8:00 am - 7:00 pm

Location: NAFIN Antonio Ortiz Mena Auditorium

Av. Insurgentes Sur # 1971, Col. Guadalupe Inn, México D.F.

 

 

"Debt Issuance Program (Mercado de Deuda)": We'd like to remind you that October 15 is the last day to register and to upload your firm's documentation to participate in the "Mercado de Deuda" Program, which is a program funded by the Mexican Ministry of the Economy (Secretaría de Economía) and operated by AMEXCAP, FOCIR , Endeavor and the Mexican Stock Exchange, to support economically with up to MXP 10 million (interest-free loan) Mexican mid-sized firms seeking support via professional services in order to issue debt through the Mexican Stock Exchange.

 

For more information follow this link www.amexcap.com/mercadodedeuda 

 
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 AMEXCAP -Supporting

 

 

EMPEA's Private Equity in Emerging Markets 2012, October 23, London