Darby Overseas Investments, the PE arm of Franklin Templeton, said that its Darby Latin American Mezzanine Fund, L.P. has sold its 37% stake in ISA Corporativo S.A. de C.V. Franklin Templeton is a San Mateo, Calif.-based investment firm with more than $644 billion in assets under management. ISA is an media company that manages advertising in subways, airports and bus stations in Mexico.
Darby Overseas Investments, Ltd. (“Darby”), the private equity arm of Franklin Templeton Investments, announced that its Darby Latin American Mezzanine Fund, L.P. divested its 37% holding in ISA Corporativo S.A. de C.V. (“ISA”), a leading outdoor media company that manages advertising in subway systems, airports and bus stations throughout Mexico.
Darby first invested in ISA in late 2003 to support the company’s growth plan after it won the contract to commercialize the advertising spaces in the Mexico City Metro. Subsequently ISA added the advertising spaces in the subway systems of Guadalajara and Monterrey, and both the terminals and the exteriors of Mexico City’s and Toluca’s airports, among others, as well as 33 bus stations in major Mexican cities. Today ISA controls approximately 10% of the Mexican outdoor advertising market.
David Hudson, Darby’s Senior Managing Director for Latin America Mezzanine, Asia and Global Infrastructure, commented: “ISA is the eleventh exit for Darby’s Latin American mezzanine fund and Darby’s most successful mezzanine investment in Mexico to date. ISA represents a good example of how Darby’s mezzanine investment strategy is helping companies in the region achieve new levels of growth.”
Jaime Salinas, the Managing Director responsible for Darby’s activities in Mexico, commented: “This transaction is the seventh exit to date for Darby’s investment operations in Mexico. ISA is another of Darby’s successful investments in the country and reinforces our local presence and track record in supporting middle-market companies with long term growth capital.”
Darby has been a pioneer in providing mezzanine products — a hybrid of both debt and equity — to various emerging market regions, including Latin America, Asia, and more recently Central and Eastern Europe. The firm has been managing mezzanine funds in Latin America since the close of its first Latin American mezzanine fund in 1999.
Darby Overseas Investments, Ltd. was founded in 1994 by The Honorable Nicholas F. Brady, who served as U.S. Secretary of the Treasury between 1988 and 1993. Richard Frank joined the firm as CEO in 1997 after his career at the International Finance Corporation (IFC)/World Bank. In 2003, Darby became a fully owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. For more information please visit darbyoverseas.com.
Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over US$644 billion in assets under management as of September 30, 2010. For more information, please visit franklintempleton.com.