According to Preqin’s Fund Manager Profiles there are currently 29 private equity fund managers based in Central America. These firms have collectively raised approximately $2.3bn in capital commitments over the last 10 years and have approximately $1.2bn available in dry powder for investments.
Private equity firms are based in four countries in Central America: Mexico, Costa Rica, El Salvador and Panama. Mexico-based private equity firms make up the majority with 19 out of the 29 private equity firms based there. With regards to the amount of capital raised, Mexico-based fund managers have raised approximately $2.2bn in total capital commitments over the last 10 years which equates to 96% of all the capital raised in the region.
The top five Central America-based fund managers based on total capital raised over the last 10 years are Nexxus Capital, EMX Capital, WAMEX, Alta Growth Capital Mexico and LatinIdea Ventures. All of these firms are based in Mexico and all have a diversified industry sector focus.
Nexxus Capital has raised nearly $1bn in total capital commitments over the last 10 years. The firm’s main investment strategy is growth, but it also makes expansion/late stage investments, as well as clean technology investments. It focuses purely on investing in Mexico and its most recent fund, Nexxus Capital Private Equity Fund VI, recently closed in June on $430mn.
EMX Capital spun off from the Carlyle Group in September 2009 and manages the Carlyle Mexico Partners Fund. The firm has two other funds and has raised approximately $326mn in total capital commitments over the last 10 years. It also focuses purely on investing in firms based in Mexico and follows a buyout strategy.
WAMEX targets mid-sized companies in high-growth manufacturing or service enterprises in Mexico. The firm seeks influential minority positions or outright majorities in the electronics, logistics, tourism, automotive and various other industries. Its most recent fund, Multinational Industrial Fund II, closed on $160mn in March 2012.