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Abraaj closes Mexican CKD on $191m

The vehicle will be invested in mid-sized companies across various sectors in the country.

The Abraaj Group has closed funds worth $191 million raised through Mexican publicly-traded certificates for investment in the country, the firm said.

Abraaj will manage the Certificates of Development Capital (CKD), which will be used to invest in Mexico’s mid-sized businesses, a source familiar with the matter told Private Equity International.

The source added that Abraaj will seek to invest in companies whose growth is fuelled by private consumption and domestic demand, and in sectors including consumer businesses, healthcare, financials and industrials.

The firm said the CKD expects to make its first transaction by the end of 2015.

Abraaj has been active in Mexico since 2007, the firm said.

In the Pacific Alliance consisting of Mexico, Colombia and Peru, Abraaj has placed $350 million of capital and made 14 investments in a range of sectors. One of those investments was $5 million put into Peruvian women’s accessories company Iasacorp in 2009.

Last month, Abraaj’s partner and Latin America regional head Miguel Olea told PEI that while the firm was not planning any exits for the remainder of the year it will be more active next summer.

Abraaj manages about $9 billion and operates an 18-person team throughout the three countries.