Peru’s Enfoca Readies Offshore PE Fund

Lima-based private equity firm Enfoca is raising an offshore fund that will mirror its existing Descubridor I vehicle, which in June increased equity under management to $170m, say executives at the shop. The new entity, to be called Discovery I, will be roughly $150m in size, taking Enfoca’s equity under management for Peru to $320m, Alberto Pasco-Font, founding partner, tells LatinFinance. Descubridor I is aimed at local institutional investors, including pension funds, while Discovery I is targeted at offshore institutional buyers. Both will invest on a pro-rata basis. The IFC is conducting a due diligence process with Enfoca with a view to taking a stake in Discovery I. In addition, Enfoca has a co-investment agreement with San Francisco-based Farallon Capital in which the US fund can be called on to contribute additional equity. The co-investment vehicle, which has no definite size and will invest opportunistically, is called Enfoca Andean Investment Fund. Enfoca is looking to take stakes in leading companies in Peru’s many fragmented industries with an eye to gaining scale through consolidation. Targeted sectors include retail, manufacturing, logistics, education and health. In August 2007 it took a $12m piece of Maestro, a Peruvian home improvement store. It is set to announce deals with Talma, a cargo operator, and tile maker Celima.