WAMEX to close on $150m by end of year

The Mexican private equity firm has already completed two investments with the fund, which held a first close in 2009 through its public investment vehicle, known as a certificado de capital de desarollo.

WAMEX Private Equity has raised $95 million for its second Multinational Industrial Fund, which is targeting $150 million for Mexican companies in the consumer goods, tourism, education, healthcare, logistics and manufacturing sectors, according to a source close to the firm. 

The firm expects to close on the fund by the end of the year, the source said. 

To date, the Mexico City-based firm has completed two transactions with MIF II, investing $12 million in HDS, a specialised healthcare company, and $14 million in CityExpress, a budget hotel chain. 
Beige Group is working as a placement agent for the fund. 
The firm held a first close on the fund in 2009, after raising $60 million through a public investment vehicle listed on the Mexican Stock Exchange. The vehicle, known as a certificado de capital de desarollo (CCD), enables Mexico's private pensions, or Afores, to invest in private equity.

Mexico’s regulatory agencies prohibit Afores from investing directly in private equity funds. Until July, the pension funds’ investments in CCDs had to be collected in their entirety upon commitment. Under new regulations, Afores must invest only 20 percent of a commitment up front, with the remaining 80 percent collected through capital calls.

WAMEX is seeking its remaining commitments for MIF II through traditional limited partnerships, which so far include institutional investors such as the Inter-American Investment Corporation, Corporación Mexicana de Inversiones Capital and Grupo Modelo SAB, according to the source.   
The fund has a five year investment period with a typical 2 percent management fee and 20 percent carry. 
MIF II’s predecessor, MIF I, raised $66 million in 2003 and was used to complete eight transactions. WAMEX was founded in 2002.