Nexus Group has closed its second institutional fund, NG Capital Partners II, on its hard-cap of $600 million, raising one of the largest pools of capital for the country, which has slowly grown into a target market for private equity.
Nexus, which was launched by Alejandro Ponce, Juan Carlos Vallejo and Peruvian billionaire Carlos Rodriguez-Pastor, has raised capital in lightning-quick fashion. The firm closed its debut fund on $320 million in 2011. MVision worked as placement agent on both funds.
LPs in Fund II include international pension plans, sovereign wealth funds, corporations, fund of funds and family offices from around the world. Of the capital raised, about 26 percent came from local and regional investors, 37 percent from North America, 21 percent from Europe and 16 percent from Asia and the Middle East, the firm said in the statement.
Many managers are targeting Chile, Colombia and Peru for deals, but not necessarily as stand-alone markets.
NG Capital Partners II will focus on investments primarily in Peru, but will have flexibility to chase opportunities across the Andean region, according to a statement from Nexus. The firm focuses on opportunities “provided by the dynamic Peruvian macroeconomic landscape and the country’s emerging middle class population”, Nexus said in the statement.
“[Nexus] makes control equity investments, focusing on creating significant value through strategic operational and financial improvements,” the firm said. “[Nexus] appoints senior investment professionals to management positions in its portfolio companies.”
Fund I is fully invested, the firm said, and its portfolio includes investments in InRetail, which owns Supermercados Peruanos, InkaFarma and InRetail Real Estate; NG Restaurants, which includes six fast food chains; Promart, a home improvements business; Oechsle, a department store and Financiera, a credit card company.
Peru is gradually becoming a destination of choice for some private equity groups attracted to the country’s solid growth and
its opening markets. Historically, fundraising in the country has not been robust. Two funds in 2012 raised $137 million and three funds raised $450 million in 2011, according to the Latin Venture Capital Association. The Carlyle Group, last year, closed its debut Peru fund on $308 million.
In terms of deals, firms completed 12 transactions for a total value of about $269 million in 2012, and two deals for $373 million in 2011, LAVCA said.
“Many managers are targeting Chile, Colombia and Peru for deals, but not necessarily as stand-alone markets; it’s much more about the opportunity to build the businesses that are pan-Andean and can tap into the larger market of consumers,” said Cate Ambrose, president and executive director of LAVCA.