Issued by Mattison Public Relations
A new US$300 million Latin America Fund has been launched by Aureos Capital, the world’s leading private equity fund management company specializing is unlisted mid-cap businesses across Latin America, Asia and Africa.
The new pan-regional fund, the Aureos Latin America Fund L.P (ALAF), has a net target IRR (annual internal rate of return) of 20%, and will invest in three main geographical areas: Mexico, the Central America Region, and the Andean Region.
The new fund will build on the investment platform and record already established by Aureos in Central America through its existing Aureos Central America Fund LLC (ACAF).
ACAF is a US$36 million fund invested in medium-sized enterprises throughout Central America. Although still in its investment period, this fund is 80% invested and has delivered a 40% annual return on its one exit to date, the Difoto Group, a regional consolidation of Xerox’s Central America operations.
The new pan-regional fund will be targeting investment opportunities in sectors such as agri-business, manufacturing, FMCG, financial institutions, services, logistics/transportation, homebuilding, private education and tourism.
"We are very excited about the opportunities for the fund," says Erik Peterson, Managing Partner.
"Our sweet spot is the sub-US$10 million deal where really good returns are available and we are one of the very few fund managers focused on this mid-cap sector. Several major investors, which include institutions located in the region, have already expressed keen interest. "
He adds: "The countries targeted by ALAF are relatively stable economies, with high growth expectations and low inflation rates. The region is also expected to benefit from regional consolidation and free trade agreements."
Erik Peterson, who currently manages the Aureos Central America Fund and has over 14 years of private equity and investment banking experience in Latin America, will lead the ALAF team.
Apart from the existing offices in Costa Rica and El Salvador, Aureos plans to open new offices in Mexico, Colombia and Peru, where it will have teams on the ground with a proven track record in private equity or investment banking. "A senior level, on the ground presence, is key in our business," says Mr. Peterson.
"Local teams are responsible for originating, structuring and managing the investments, in an environment where relationships are fundamental to the success of any investment."
The First Closing of the new fund is expected to be reached at the end of the second quarter of 2007 with commitments of approximately US$150 million.
Management fees are 2.5% of total capital commitments during the investment period and, thereafter, 2.5% of funded capital commitments outstanding.
For further information please contact Erik Peterson, Managing Partner, epeterson@aureos.co.cr, tel: +506 201 9020.
Aureos Capital, established in 2001, is a leading global private equity fund manager specialized in providing expansion and buy-out capital to unlisted mid-cap businesses in emerging markets. Aureos is aiming to double funds under management to US$ 1.2 billion in the next 2 years, and will launch new funds in Latin America, Central Asia and Pan Africa.
Brigit van Dijk-van de Reijt
Partner,
Aureos Advisers
020 7647 6800
Email: mail@aureos.com
Steve Rudaini or John Mattison
Mattison Public Relations
020 7645 3636