ACON Latin America Opportunities Fund, a private equity investment fund managed by ACON Investments, L.L.C, said today that it has exited from its investment in InverCap Holdings. No financial terms were disclosed. InverCap Holdings owns the largest independent pension fund manager in Mexico.
WASHINGTON, June 11, 2013 /PRNewswire/ — ACON Latin America Opportunities Fund (“ALAOF”), a private equity investment fund managed by an affiliate of ACON Investments, L.L.C., (“ACON”), announced today that it has exited from its investment in InverCap Holdings (“InverCap” or the “Company”). InverCap’s main subsidiary, Afore InverCap, is the largest independent pension fund manager in Mexico.
ACON invested in the Company in October 2010 through a complex structured transaction that involved the purchase of a participation in a mix of debt and warrants. Since ACON’s investment, InverCap’s managed funds improved dramatically in the official rankings and, starting in December 2011, ranked #1 across all fund categories. During ACON’s investment period, InverCap’s assets under management grew 118% from P$53.4 billion to P$116.4 billion, the number of affiliated clients grew 53%, from 918,000 to 1.4 million and its market share in the Mexican private pension fund system rose from 3.8% to 5.6%. The investment in InverCap represents one more example of ACON’s flexible investment strategy in Latin America, where limited access to financing in the middle-market creates opportunities to achieve private equity returns with instruments that rank higher in the capital structure and are often highly collateralized.
ACON has a long history investing in Latin American middle-market companies where financial services, retail, energy and infrastructure services continue to be among the firm’s key areas of focus. Early in 2010, ALAOF made an investment in Credivalores, the largest non-bank consumer lender in Colombia. In July 2011, ALAOF acquired Grupo Sala one of the largest waste management companies in Colombia. In February 2012, ALAOF led a consortium of investors to invest in Hidrotenencias, a regional hydro power holding company headquartered in Panama. In April 2012, ALAOF invested in Waldo’s Dolar Mart de Mexico, the largest dollar store chain in the country, and in BSM Engenharia a large equipment rental and logistics company in Brazil. These investments follow over a decade of successful investments throughout Latin America for ACON, having invested in over 28 transactions in 9 different countries in the region.
About ACON Investments, L.L.C.
Founded in 1996, ACON Investments is a private equity investment firm focused on the middle market in both the United States and Latin America that has managed approximately $2.75 billion of capital through various funds. ALAOF is ACON’s third institutional pool of capital focused on Latin America. The Fund invests throughout the region with a focus on industries or companies at key inflection points in their development and pursues these opportunities in close partnership with established management teams. Headquartered in Washington, D.C., ACON has offices and investment professionals throughout the Americas including Mexico City and Sao Paulo. Its U.S. investing activities include the recent closing of its third pool of capital focused on US mid-market buyouts which recently closed at $751 million. For more information, visit www.aconinvestments.com