Aureos Capital’s Emerge Central America Growth Fund has invested in Niva Euroequipos, a Costa Rican company that specialises in construction equipment rental.
Aureos Capital’s Emerge Central America Growth Fund has invested in Niva Euroequipos, a Costa Rican company that specialises in construction equipment rental.
The investment was made through a convertible loan.
The Emerge fund was established by Aureos Capital, a private equity fund management company specialising in investing in small to mid-cap businesses in emerging markets. Emerge focuses specifically on small and medium sized companies in Central America and the Dominican Republic.
Niva commenced operations in Costa Rica in 2005 selling and renting tower cranes. Since then it has expanded its product line to include formworks, scaffolding, and shoring equipment among others.
José Ulate, partner for the Emerge fund, says: ‘Niva is a company with very capable and professional management and despite recent challenging conditions in the construction sector it has an impressive track record and great potential. Our investment in Niva will help to further grow the company, as demand for equipment rental is expected to pick up in the very near future, despite the global economic slowdown.’
Eduardo Vargas, founding partner of Niva, says: ‘Aureos’ investment will allow Niva to consolidate its position in the Costa Rican market, open up new markets and deliver new products to our existing customers. Despite the global downturn, we expect to see higher growth rates in the near future and with Aureos on board we will be in a strong position to tap into this growth.’
The investment in Niva is the Emerge fund’s fourth investment.
