ACON Latin America Opportunities Fund (ALAOF), a private equity investment fund managed by an affiliate of ACON Investments, has exited from its investment in InverCap.
InverCap’s main subsidiary, Afore InverCap, is the largest independent pension fund manager in Mexico.
ACON invested in the company in October 2010 through a complex structured transaction that involved the purchase of a participation in a mix of debt and warrants. Since ACON’s investment, InverCap’s managed funds improved dramatically in the official rankings and, starting in December 2011, ranked number one across all fund categories.
During ACON’s investment period, InverCap’s assets under management grew 118 per cent from MXN53.4bn to MXN116.4bn, the number of affiliated clients grew 53 per cent, from 918,000 to 1.4 million and its market share in the Mexican private pension fund system rose from 3.8 per cent to 5.6 per cent.
ACON has a long history investing in Latin American middle-market companies where financial services, retail, energy and infrastructure services continue to be among the firm’s key areas of focus. Early in 2010, ALAOF made an investment in Credivalores, the largest non-bank consumer lender in Colombia. In July 2011, ALAOF acquired Grupo Sala one of the largest waste management companies in Colombia. In February 2012, ALAOF led a consortium of investors to invest in Hidrotenencias, a regional hydro power holding company headquartered in Panama. In April 2012, ALAOF invested in Waldo’s Dolar Mart de Mexico, the largest dollar store chain in the country, and in BSM Engenharia a large equipment rental and logistics company in Brazil.
