The Abraaj Group, a leading investor operating in global growth markets, has raised 3.2 billion Mexican peso ($191 million) through Mexican publicly traded certificates, known as Certificados de Capital de Desarrollo or Certificates of Development Capital (CKD). 

 

The CKD, which will be managed by Abraaj, has a specific mandate to invest in Mexico, said a statement.

 

The fundraising has strengthened Abraaj’s position in the Mexican private equity market as it will enable the group to tap domestic savings and invest them into mid-sized Mexican businesses that demonstrate robust growth capabilities and are poised for regional and international expansion, it said.

 

The CKD will focus on those sectors that are likely to benefit from increased private consumption and domestic demand and will also target Mexican family businesses that are seeking both growth capital and expertise to accelerate their regional or international expansion.

 

The target sectors that fall under the investment strategy of the CKD will include retail, FMCG, healthcare, education, logistics and financial services. 

 

The CKD intends to make its first transaction by the end of the year.

 

Over the past 15 years, the private equity industry in Mexico has grown significantly due to an open economy, the maturation of capital markets and improving macroeconomic fundamentals, said the statement.

 

Moreover, with an ever-growing number of Mexican businesses seeking capital and strategic partnerships to bolster growth, the opportunity for Abraaj to leverage its global platform and local connectivity in the country has never been greater, it said.

 

Miguel Olea, partner and regional head for Latin America at The Abraaj Group, said: “The successful closing of the CKD is evidence of the growing confidence Mexican investors have in the private equity asset class, and in Abraaj as their fund manager of choice. Private businesses are critical to the health of the Mexican economy and they have significant need for growth capital to reach their full potential. 

 

"This CKD offers a valuable bridge between those who have capital to invest and those who will benefit from putting that capital to work. We look forward to investing the CKD in high growth businesses in Mexico, where we have the ability to drive the growth agenda, to help them grow into regional players and to bring our expertise to bear in order to create long-term value for our investors and stakeholders.” - TradeArabia News Service