ACON Investments has closed ACON Latin America Opportunities Fund IV on $515 million. In May, the firm also closed on the issuance of about $150 million of Mexican publicly traded trust certificates called Certificados de Capital de Desarrollo (CKD). The fund, along with the CKD and co-investment potential, brings ACON’s total capital potential to more than $600 million for pan-regional middle market private equity investments. Stanwich Advisors worked as placement agent on the fundraising.
ACON Investments, L.L.C. and its affiliates (“ACON” or the “Firm”) are pleased to announce the final closing of their most recent Latin America middle market private equity fund, ACON Latin America Opportunities Fund IV, L.P. (“ALAOF IV” or the “Fund”). The Fund has total commitments of US$515 million and is the Firm’s fourth consecutive investment program dedicated to Latin America.
In May 2014, the Firm also closed on the issuance of MX$2 billion (approximately US$150 million) of Mexican publicly traded trust certificates, specifically Certificados de Capital de Desarrollo or Capital Development Certificates (also known as the “CKD”). The Fund, together with the CKD and co-investment appetite from many of ACON’s limited partners, represents well over $600 million of potential capital for pan-regional mid-market private equity investments.
ALAOF IV was oversubscribed, with global investor interest from Europe, North America, Asia and Latin America. Commitments to ALAOF IV included substantial re-commitments from existing ACON investors as well as several new limited partner relationships. The Fund’s investors include sovereign wealth and pension funds, insurance companies, development banks and family offices. ALAOF IV is a pan-regional fund with a mandate to invest primarily in private or thinly traded public companies.
With a robust pipeline of new opportunities, the Fund’s flexible investment objective allows it to invest throughout Latin America, acquire both controlling and minority equity interests and to invest in securities throughout the capital structure. The Fund continues ACON’s long and successful Latin American investment style including 30 investments in companies located in nine countries in Latin America.
The investors in the CKD include several Mexican private pension funds. Under the Mexican regulatory regime, the pension funds are currently limited to making investments only in Mexico. A portion of the CKD is invested in the Fund. The CKD is managed by ACON’s affiliate in Mexico.
With the closing of ALAOF IV and the CKD, ACON has raised more than $3.5 billion of capital commitments since inception. “We are extremely appreciative of our returning limited partners for their strong support of ALAOF IV and look forward to building similarly long-standing relationships with our new investors,” said Ken Brotman, a Founding and Managing Partner of ACON. “We believe the current environment in Latin America provides a highly attractive opportunity to generate favorable returns. Furthermore, we believe our team’s long track record and expertise in these markets uniquely positions us to capitalize on this opportunity.”
ACON’s placement agent for ALAOF IV was Stanwich Advisors, LLC. Hogan Lovells US, LLP served as ACON’s primary fund counsel with McCarthy Tetrault LLP joining to advise on Ontario law matters.
About ACON Investments
ACON Investments, L.L.C. is a Washington, DC-based international private equity investment firm that manages private equity funds and special purpose partnerships that make investments in the United States and Latin America. Founded in 1996, ACON and its principals have managed over $3.5 billion of capital. ACON has professionals in Washington, DC, Los Angeles, Mexico City, Sao Paulo, Rio de Janeiro and Bogota. The Fund represents ACON’s fourth pool of capital for Latin America. In the United States, affiliates of ACON are currently investing out of its third institutional capital pool. For more information, visit www.aconinvestments.com.