ACON closes fourth Latin American middle market PE fund
ACON Investments has held the final closing of the firm’s most recent Latin America middle market private equity fund, ACON Latin America Opportunities Fund IV, with total commitments of USD515 million.
In May 2014, the firm also closed on the issuance of MXD2 billion (approximately USD150 million) of Mexican publicly traded trust certificates, specifically Certificados de Capital de Desarrollo or Capital Development Certificates (CKD).
The fund, together with the CKD and co-investment appetite from many of ACON's limited partners, represents well over USD600 million of potential capital for pan-regional mid-market private equity investments.
ALAOF IV was oversubscribed, with global investor interest from Europe, North America, Asia and Latin America. Commitments to ALAOF IV included substantial re-commitments from existing ACON investors as well as several new limited partner relationships. The fund's investors include sovereign wealth and pension funds, insurance companies, development banks and family offices.
ALAOF IV is a pan-regional fund with a mandate to invest primarily in private or thinly traded public companies. The fund's flexible investment objective allows it to invest throughout Latin America, acquire both controlling and minority equity interests and to invest in securities throughout the capital structure. The fund continues ACON's Latin American investment style including 30 investments in companies located in nine countries in Latin America.
The investors in the CKD include several Mexican private pension funds. Under the Mexican regulatory regime, the pension funds are currently limited to making investments only in Mexico. A portion of the CKD is invested in the fund. The CKD is managed by ACON's affiliate in Mexico.
With the closing of ALAOF IV and the CKD, ACON has raised more than USD3.5 billion of capital commitments since inception.
"We are extremely appreciative of our returning limited partners for their strong support of ALAOF IV and look forward to building similarly long-standing relationships with our new investors," said Ken Brotman, a founding and managing partner of ACON. "We believe the current environment in Latin America provides a highly attractive opportunity to generate favourable returns. Furthermore, we believe our team's long track record and expertise in these markets uniquely positions us to capitalise on this opportunity."
ACON's placement agent for ALAOF IV was Stanwich Advisors. Hogan Lovells US served as ACON's primary fund counsel with McCarthy Tetrault joining to advise on Ontario law matters.
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