Three weeks after its $140 million (€94 million) first close, Aureos Capital’s Latin America Fund has made its first investment with the acquisition of a 31.25 percent stake in Mexico office equipment distributor Docuformas. Financial terms were not disclosed.
Docuformas has contracts to distribute the products of Xerox and Hewlett Packard, among others. The firm also has contracts with opticians, medical equipment companies and computer and software firms. The company will use Aureos’s investment to expand its operations, diversify its product line and ensure future financial growth.
“The speed at which this initial investment was completed is an indication of the quality of mid-cap companies in the region and their appetite for private equity capital,” Aureos managing partner Erik Peterson said in a statement.
Aureos Latin America Fund is targeting a $300 million close in June 2008. The fund invests between $2 million and $10 million per deal, and targets companies that stand to benefit from better access to the US, via free trade agreements.
Aureos is also in the process of raising several other regionally focussed funds, all of which will target small to mid-cap companies. The firm held a first close last November on $50 million for a planned $100 million Central Asia fund, and has also raised $16 million for a $25 million Pacific Islands fund as well as $34.5 million toward a $70 million China fund.
This year, Aureos also plans to raise a $400 million Africa fund. The new fundraising efforts, when complete, will have doubled Aureos’ capital under management to $1.2 billion. The firm was established in 2001, when it was formed to take over management of a portfolio of 14 CDC Group funds, and has 25 offices in sub-Saharan Africa, Southeast Asia, India, China, the Pacific Islands and Central America.