Home News Briefs EMP Global Raises Central American Mezz Fund
EMP Global Raises Central American Mezz Fund
EMP Global has closed its Central American Mezzanine Infrastructure Fund with $150 million in capital commitments. Limited partners include Finnish Fund for Industrial Cooperation, Inter-American Development Bank, IFC, Netherlands Development Finance Company, Central American Bank for Economic Integration and Mexican Fondo de Fondos.
EMP Latin America (EMPLA) today announced that the final closing of its Central American Mezzanine Infrastructure Fund (CAMIF) took place on November 23 at US$150 million. In this closing EMPLA welcomes Finnish Fund for Industrial Cooperation (Finnfund) as CAMIF's latest Limited Partner. Despite today's challenging market conditions the Fund was able to close at its original target size thanks to support from its existing participants the Inter-American Development Bank (IDB), IFC, a member of the World Bank Group, Netherlands Development Finance Company (FMO), Central American Bank for Economic Integration (CABEI), and Mexican Fondo de Fondos (CMIC).
CAMIF offers long-term mezzanine financing to private infrastructure companies in Central America, Mexico, Colombia, and the Dominican Republic. The Fund focuses on traditional infrastructure projects, such as transportation, energy and telecommunications. In addition, CAMIF is able to invest in related sectors, such as natural resources, tourism, agribusiness, alternative fuels, health & education, and water & sanitation.
On December 1, CAMIF made its first mezzanine investment in Promoción e Industrialización de Palma (PIP), the largest integrated palm oil producer in Mexico. The investment was a combination of acquisition and expansion financing. The Fund has a very active pipeline throughout its target region and is in advanced negotiations for a number of potential fund investments.
"Central America has huge infrastructure needs and given the dramatic drop in private sector capital flows to the region, CAMIF is very well-positioned to make profitable mezzanine investments in this market environment", says James Martin, EMPLA's Managing Partner. "Mezzanine financing is proving to be a preferred solution for strengthening capital structures and attracting senior debt to viable projects, especially in CAMIF's focus region".
CAMIF is independently managed by EMPLA, a joint venture between EMP Global LLC, a leading private equity fund manager focused on emerging markets, and senior members of its Latin American team. For inquiries, please contact Lucas de Beaufort at debeaufortl@empglobal.com
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