Latest LatAm fundraising beats target

Peruvian firm Nexus Group has beat its target for its first international institutional fund, showing LP appetite for the region can overcome scepticism of new managers.

Lima, Peru-headquartered buyout firm Nexus Group has closed its first institutional fund at its hard cap of $320 million, 28 percent ahead of its target of $250 million.

Latin American, along with China, has attracted significant interest from investors looking to tap into high-growth markets. Other funds in the market targeting Latin America include Galtere Global Agribusiness, which has a $1 billion target, a $950 million vehicle being raised by the International Finance Corporation, and an Hispania Capital Partners fund which is aiming to raise $150 million. The biggest raised to date is Advent International’s $1.65 billion 2009-vintage fund. Last year, GPs raised seven funds worth a combined $4.85 billion, according to Private Equity Connect.  

Nexus said it had attracted commitments from family offices, funds of funds, pension funds and sovereign wealth funds. In terms of a geographical breakdown, 35 percent came from local and regional investors in Latin America, 20 percent from European limited partners, 30 percent from North America, and 15 percent from LPs in the Middle East and Asia.

Management at Nexus have made what they called a “significant contribution” to the fund. The Nexus team is led by managing partners Carlos Rodriguez-Pastor, Juan Carlos Vallejo and Alejandro Ponce.

For several LPs, their commitment to NG Capital Partners I was their first to the Latin American private equity market, the firm said.

MVision Private Equity Advisors acted as placement agent on the fundraising, while Shearman & Sterling provided legal advice.

NG Capital Partners I  has already deployed capital, investing in five companies: education group Colegios Peruanos, retailer Tiendas Peruanas, credit card company Financiera Uno, pharmacy chain Inkafarma, and fast food outlet Bembos.

The fund will take controlling positions by making equity investments of between $30 million and $45 million, Nexus said. It aims to create significant value through strategic operational and financial improvements to its investee businesses, it added, and will appoint members of its own team to management positions at its portfolio companies.