Mexico Real Estate Player Trawls for Funds

Miami-based Alsis Funds is looking to raise $100m on top of the $152m in assets it already manages, and foresees significant opportunity in affordable Mexican real estate. “Next year could probably be the best year we’ve ever had in terms of opportunity for the fund,” Alsis Funds managing partner Alfonso Montiel tells LatinFinance. The fund is marketing to US funds of funds seeking private equity type investment, as well as ultra high net worth individuals. The lock up is 7 years and some participants are first-time investors in LatAm. Montiel notes decent appetite from those investor bases, while also seeing reduced demand from pension funds. “A lot of them are reassessing their strategies, I think it’s going to be a difficult year for raising pension fund money,” he adds. The investor notes especially attractive targets in Mexico. “While you are still not seeing the kinds of bargains you see in the US in a similar asset class, because firstly there seems to be a lag, and secondly the economy is sound in Mexico – people are paying their mortgages,” adds Montiel. According to the investor, the fund is now being shown a lot more deals, allowing it to be increasingly selective. “The traditional players are not participating . . . funds like ourselves now get to see a dealflow that was unthinkable a year ago,” says Montiel. Alsis is focused on Mexico, but also interested in Colombia, Peru and Central America. The fund’s objective is to provide risk-adjusted returns through asset-backed structured transactions such as loans and other financial instruments originated in LatAm. Alsis invests in performing and non-performing mortgage loans, consumer loans, micro loans, trade receivables and lease contracts. “People are optimistic about the region, especially as an alternative to everything else that’s happening,” says Montiel. “We’re going to see a slowdown, but competition for investments has decreased significantly.” The Alsis Latin America Fund has $52m of LP equity fro