PE Fund Wraps CCD

Promecap has raised MXP2.75bn through a certificado de capital de desarrollo (CCD) transaction supporting a private equity fund, the first of two CCDs pricing Friday after a break in the market of several months. It is the largest-ever from a pure private equity fund. In the deal, the PE firm founded by Fernando Chico Pardo plans to make investments in debt and equity across a variety of sectors in Mexico, with a special focus on smaller assets poised to benefit from middle-class growth. The certificates priced at MXP100, and the return structure follows the industry standard model. Investors receive 80% of the fund’s proceeds and Promecap gets 20%, as long as the buyers’ initial investment plus a 9% preferred return is met, according to regulatory documents. The CCD has a 2020 maturity, which can be extended for a year up to 2 times, with consent of holders. Credit Suisse managed the transaction. Founded in 1997, Promecap had MXP15bn under management at the end of Q1. The deals from Promecap and AMB, which also closed Friday, follow a MXP1.46bn CCD from PE fund Nexxus Capital in March.