Deals of the year 2009: Latin America – Afores drive new private equity market
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Deals of the year 2009: Latin America – Afores drive new private equity market

Wamex entered new territory with afores-friendly funding.

Company: Wamex Private Equity Management
Size: $55 million
Placement agent: Credit Suisse

Innovation returned to the Mexican capital markets in 2009. Two deals successfully used Mexican equity-linked certificates (certificado de capital de desarollo, CKDs) to raise funds. These structured notes were exclusively designed for the Mexican market, targeting the regulated pension funds (afores). On November 5 local group Wamex Private Equity Management announced the first closing of $55 million for the Multinational Industrial Fund II. Of the money raised, 80% came from afores managers. A second close will be achieved with an offshore vehicle. The successful execution of this deal meant that for the first time it was feasible for some of the afores’ $75 billion to be invested in private equity funds. With such a wall of funds suddenly lined up and eager to invest it is easy to see how important the introduction of CKDs, and their successful use in the Mexican market, will be to the Latin American country’s future.

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