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Aureos closes Latin America fund with USD184m in commitments

Aureos Capital, a private equity fund management company focused on small to mid-sized businesses in emerging markets, has raised USD184m at the final close of the Aureos Latin America

Aureos Capital, a private equity fund management company focused on small to mid-sized businesses in emerging markets, has raised USD184m at the final close of the Aureos Latin America Fund.

The fund will make investments of between USD2m and USD10m in small to mid-sized businesses in Mexico, Central America and the Andean Region, including Colombia and Peru.

Investors include international and regional asset managers, pension funds, insurance companies and development finance institutions.

Sev Vettivetpillai (pictured), chief executive officer of Aureos Advisers, says: ‘Considering the recent turbulence in the global economy and with investors reducing their appetite for risk we are delighted with the results of the ALAF fundraising.

‘Whilst Latin America has not been immune from the recent economic downturn, the emergence of a growing middle class makes this a highly attractive investment market.’

The fund has already made seven investments, including Mexican IT solutions company Grupo MetroNet, Mexican office equipment vendor and leasing company Docuformas, fleet management and leasing companies Analistas de Recursos Globales in Mexico and Rentandes in Colombia, and most recently Peruvian fashion accessories retailer IasaCorp.

Erik Peterson, the regional managing partner of the Aureos Latin America Fund, says: ‘ALAF’s investments to date have been in companies likely to be well-insulated from the downturn. For example ALAF has made several investments in businesses that provide outsourcing and leasing services. In the current economic climate many companies are looking to cut costs and shore up their balance sheets and are entering into long-term leasing and outsourcing contracts in order to lower their capital expenditure budgets.’

Aureos has teams of investment professionals permanently based in Mexico City (Mexico), Bogotá (Colombia), Lima (Peru), San José (Costa Rica) and San Salvador (El Salvador).

Aureos also manages two other funds in Latin America: a USD21m fund for investment in small enterprises in Central America, the Emerge Central America Growth Fund; and Aureos Central America Fund, a USD36m fund for investment in small and medium-sized enterprises in Central America which is already in divestment mode.

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