Aureos Capital has closed its debut Latin America fund with $184 million in capital commitments. It will invest between $2 million and $10 million in mid-sized businesses in Mexico, Central America and the Andean region. It had originally targeted $300 million, and later revised the target downward to $200 million.
Aureos Capital, the private equity fund management company specialising in investing in small to mid-sized businesses in emerging markets, has raised US$184 million at the final close of the Aureos Latin America Fund (ALAF).
ALAF will make investments of between US$2 million and US$10 million in small to mid-sized businesses in Mexico, Central America and the Andean Region, including Colombia and Peru.
Investors in ALAF include international and regional asset managers, pension funds, insurance companies and Development Finance Institutions.
Sev Vettivetpillai, Chief Executive Officer of Aureos Advisers Ltd, comments: “Considering the recent turbulence in the global economy and with investors reducing their appetite for risk we are delighted with the results of the ALAF fundraising.”
“Whilst Latin America has not been immune from the recent economic downturn, the emergence of a growing middle class makes this a highly attractive investment market.”
ALAF has already made seven investments, including Mexican IT solutions company Grupo MetroNet, Mexican office equipment vendor and leasing company Docuformas, fleet management and leasing companies Analistas de Recursos Globales in Mexico, and Rentandes in Colombia, and most recently Peruvian fashion accessories retailer IasaCorp.
Erik Peterson, the Regional Managing Partner of the Aureos Latin America Fund, says: “ALAF’s investments to date have been in companies likely to be well-insulated from the downturn. For example ALAF has made several investments in businesses that provide outsourcing and leasing services. In the current economic climate many companies are looking to cut costs and shore up their balance sheets and are entering into long-term leasing and outsourcing contracts in order to lower their capital expenditure budgets.”
“In addition to benefiting from high quality local expertise on the ground Aureos rarely relies on third party debt financing as part of its investment structure. This puts us in a strong position to invest in companies with capable management teams and strong growth potential ahead of buy-out firms who do rely on debt financing and may no longer be able to secure adequate funding.”
Aureos has teams of investment professionals permanently based in Mexico City (Mexico), Bogotá (Colombia), Lima (Peru), San José (Costa Rica) and San Salvador (El Salvador).
Aureos also manages two other funds in Latin America: a US$21 million fund for investment in small enterprises in Central America, the Emerge Central America Growth Fund, and Aureos Central America Fund, a US$36 million fund for investment in small and medium-sized enterprises in Central America which is already in divestment mode.
This press release is not for distribution to United States Newswire Services or for dissemination in the United States.
This announcement does not contain or constitute or form a part of an offer of securities for sale in any jurisdiction, including the United States. Securities in the Aureos Latin America Fund may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
AUREOS CAPITAL LTD
Aureos Capital Ltd is a private equity fund management company which specialises in providing expansion and buy-out capital to unlisted mid-cap businesses across Asia, Africa and Latin America.
Since its establishment in 2001, Aureos has increased its funds under management to over US$ 1 billion and extended its geographical footprint to over 50 emerging markets covering Asia, Africa and Latin America, by establishing 15 regional private equity funds.
Investors in Aureos funds include institutional investors, bilateral and multilateral development finance institutions, pension funds, sovereign wealth funds, fund of funds, family offices and foundations and high net worth individuals.