Nexxus Capital Private Equity Fund III has won a $20 million commitment from CDC, a private equity emerging markets fund-of-funds. Mexico-based private equity firm Nexxus Capital manages the fund, which has a $250 million target.
The fund will not be sector-specific and will invest at least 80 percent in Mexican-based companies and the other 20 percent in companies in neighbouring countries with links to Mexico. It will typically invest between $50 million and $400 million in each deal, concentrating on both growth capital and buyout opportunities.
Nexxus Capital was founded in 1998 by Luis Harvey and Arturo Saval. The firm has managed two previous funds in partnership with US-based emerging markets firm Zephyr. The first fund, Zephyr Nexxus Mexico Trust I, achieved an overall return of 3.2 times.
CDC has £1.6 billion under management and has invested in more than 60 funds in Africa, Asia and Latin America. It recently committed $20 million to Lombard Asia III, an expansion capital Asia-focused fund.