FoF CCD Plots Reopening

AGC Controladora is planning to reopen its certificado de capital de desarrollo (CCD) transaction in Mexico’s domestic market, according to regulatory documents, targeting a February transaction. In July the private equity manager affiliated with US-based Northgate Capital raised MXP553m ($42m), the first pricing of what should ultimately be a fund of up to MXP13bn. through a 10-year fund. The 2022 transaction was called the first fund of funds in the CCD market, though it will be able to make direct investments in Mexican companies in addition making them to other PE funds. The ACG fund invests in a variety of sectors, but the return structure varies somewhat from most PE fund-based CCDs. Investors receive their initial investment plus a preferred return equivalent to the Mexican Bolsa’s plus 500bp, before the managers take a 5% cut, with any remaining funds being divided between investors (95%) and managers (5%). Vector is managing the transaction.