Abraaj Raises $191M For Mexican PE Investments

Oct 6 2015 | 7:35pm ET

Frontier market private equity specialist Abraaj Group has raised $191 million directly through Mexican publicly traded certificates for investments in the country.

The proceeds from Abraaj’s certificates of development capital, or CKD, will be used to invest in mid-sized Mexican businesses with strong growth potential and have the capability to expand both regionally and internationally, according to a company statement. 

Abraaj will target retail, fast-moving consumer goods, healthcare, education, logistics and financial services companies, and may close the first transaction by the end of the year. 

“The successful closing of the CKD is evidence of the growing confidence Mexican investors have in the private equity asset class, and in Abraaj as their fund manager of choice,” commented Abraaj Latin America head Miguel Olea in a statement. “Private businesses are critical to the health of the Mexican economy and they have significant need for growth capital to reach their full potential. This CKD offers a valuable bridge between those who have capital to invest and those who will benefit from putting that capital to work.

It was unclear why the Dubai-based firm utilized CKDs instead of raising funds via a more traditional private equity vehicle. The company is well acquainted with the Latin American markets, having made 14 investments worth $350 million in Mexico, Colombia and Peru since 2007, and has raised approximately half its target $600 million Latin America Fund II private equity fund, according to securities filings.

Abraaj Group is a leading private equity investor focused on the growth markets of Africa, Asia, Latin America, the Middle East, and Turkey. The firm has more than 20 offices spread across five regions with hubs in Istanbul, Mexico City, Nairobi and Singapore and manages approximately $9 billion across regional, sector and country-specific funds. 

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