September 3, 2018 Uncategorized
PC Capital, a Mexico City-based private equity fund, has begun initial talks with current limited partners (LP) to raise a new USD 200m fund, Managing Partner Pablo Coballasi told Mergermarket.
The PC Capital Development Fund 2, as the new investment vehicle will be called, will target lower middle market companies that generate a positive social impact in Mexico, preferably in the financial services, consumer services and sustainability sectors, Coballasi said.
The average ticket size will be USD 5m-USD 10m for flexible equity stakes, but the investment amount may reach up to USD 25m per target, the executive added.
Although the majority of existing LPs are keen to reinvest in the new vehicle, management plans to start negotiations with potential new investors this month, with a view to achieving a first close within 12 months, Coballasi noted.
PC Capital, which was founded by Coballasi and business partner Pablo Cervantes in 2008, aims to contribute to Mexico’s social development by offering local small- to medium-sized enterprises (SMEs) access to institutional capital, said the executive.
After operating for six years on a deal-by-deal basis, the company closed its first Mexico Development Fund 1 in 2014, said Coballasi.
Its portfolio includes Mexico City-based Te Creemos, the country’s largest privately held microlender, Guadalajara-based university Universidad Nacional, and Morelos, Mexico-based bulk seed distributor Rancho Los Molinos.
This news service reported last week that Te Creemos is preparing to launch an initial public offering (IPO) within the next three years.
Alongside its private equity business, PC Capital also has an investment banking arm and a real estate investment fund, Coballasi noted.
by Dominic Pasteiner in Mexico City