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Investment Spotlight: Mexico An EMPEA Professional Development Webcast - 28 February 2012

Investment Spotlight: Mexico

An EMPEA Professional Development Webcast with AMEXCAP, Aureos Capital, Afore Sura, EMX Capital and Graycliff Partners

An EMPEA Professional Development Webcast


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EMPEA Upcoming Events

Save the Dates! • 11 April 2012: EMPEA Webcast: LP Outlook for Emerging Markets - Preview of EMPEA’s 2012 LP Survey Results

• 3-4 major investors will discuss the findings from EMPEA’s soon-to-be released 8th annual global LP Survey

and the results of recent study of Asian LP attitudes. Don’t miss this exclusive preview of the results

• EMPEA Members and qualified institutional investors receive complimentary event registration

• 14-16 May 2012: IFC’s 14th Annual Global Private Equity Conference in association with EMPEA – Washington,

D.C.

• May 14th – 2nd Annual Institutional Investors-Only Summit

• May 14th – IFC/EMPEA Members-Only Reception

• May 15th – 16th: Main Conference Program

• May 17th – EMPEA’s Inaugural Fundraising Masterclass

• Qualified institutional investors receive complimentary registration

• 23-24 October 2012: Capital Impact 2012 & the 4th Annual Private Equity in Africa Leadership Summit – London

• Qualified institutional investors receive complimentary registration


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EMPEA Insight Mexico to be released this week…

EMPEA Insight offers readers an overview of the data and drivers behind investment trends in emerging markets private equity. Each issue profiles funds, deals and exits in individual countries, regions, or sectors attracting PE investments such as real estate and infrastructure.

• EMPEA Members can login to EMPEA website to access Insight Mexico report on a complimentary basis, and non-members can purchase the report.

http://www.empea.net/Login.aspx?ReturnUrl=/Main-Menu-Category/EMPEA-Research/Copy+of+EMPEA-Insight/EMPEA-Insight-Local-Pension-Capital-in-Latin-America.aspx�


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Agenda

I. AMEXCAP Overview

II. Panelist Introductions and Firm Overviews

III. Discussion: Assessing Mexico’s Investment Climate

1) Current State of the Market

2) Fundraising/Investor Attitudes

3) Investment/Deal Flow

4) Portfolio Management

5) Exits

6) Q&A

7) Closing Remarks

VI. Annex


Overview of the Mexican PE Sector

Private equity / venture capital is an industry relatively new in Mexico

The first registers on investments in PE funds date back to 1995

Mexican companies in the 90s became issuers of ADRs in the US

First institutional Mexican LPs were Federal development banks

Many family offices with significant AUM and pipeline

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1.14 1.06 1.03

0.61

0.41 0.37

0.21 0.16 0.15

0.04

% G

DP

Private Equity Penetration It’s not only the positive macro scenario,

Despite robust macro fundamentals, PE penetration remains underdeveloped compared to emerging

markets.

Difficulty of medium size companies to access financing.

Banks focus mainly in AAA companies or consumer loans.

Investors’ perception improves not only for the LATAM region, also for Mexico.

Attractive private equity multiples compared to other emerging markets.

PE Penetration as % of GDP

Source: EMPEA

6


Things Happening

Government’s initiatives to overcome the lag in PE penetration are

underway by promoting a boost in Foreign Direct Investment, and

developing friendlier regulations towards the industry.

Pension funds increased participation in equity markets contributing to an

increase in the number of IPOs and the liquidity of the markets.

The Mexican bolsa and regulators developed a new vehicle for private

equity, infrastructure and real estate (CKDs).

Strong Growth, Moderate Inflation & Sound External Accounts

(1) Source: CONSAR

7


Panelist Introductions and Firm Overviews

8

Moderator: Arturo Saval Chairman, AMEXCAP and Managing Director, Nexxus Capital

Miguel Ángel Olea

Managing Partner Aureos Mexico Advisers

Joaquin Avila

Senior Managing Director EMX Capital Javier Ledesma Arocena Principal Graycliff Partners

Sabina Chavez Head of Credit and Alternative Investments Analysis Afore Sura

Investment Spotlight: Mexico An EMPEA Professional Development Webcast - 28 February 2012 9

NEXXUS CAPITAL

Founded in Mexico City in 1995, Nexxus Capital, S.A. de C.V. (“Nexxus”) is an

independent employee-owned private equity firm targeting Mexican medium-

size companies

US$660mm in capital raised and co investments of US$110mm

Successful track record achieving unleveraged Gross IRRs of over 25% in US

Dollars and over

30% in MXP, key investments include Homex, Genomma Lab and Sports World

High Corporate Governance Standards, with heavy hands-on approach

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Aureos Capital Overview

10

• Aureos Capital is a private equity fund management company which specializes in providing expansion and buy-out capital to small and medium sized businesses across Asia, Africa and Latin America.

• Since its establishment in 2001, Aureos has increased its funds under management to US$ 1.3 billion and extended its geographical footprint to over 50 emerging markets covering Asia, Africa and Latin America, by establishing 17 regional private equity funds.

• Investors in Aureos funds include institutional investors, bilateral and multilateral development finance institutions, pension funds, sovereign wealth funds, fund of funds, family offices and foundations and high net worth individuals.

• As part of the 16 funds raised by Aureos throughout its history, ALAF I (Aureos Latin America Fund I) is a regional fund of US$ 184 million, of which 50% of resources are allocated to Mexico and the remainder to Peru, Colombia and Costa Rica.

• Aureos Capital has been recently acquired by Abraaj Capital, a leading private equity manager in MENASA, making it the largest private equity firm in emerging markets worldwide. The combined FUM of both entities amounts to US$ 7.5 bn.


EMX Capital Overview

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• Private equity fund with Mexico focus and opportunistic approach

• Over 6 years successfully investing together

• Spin-off from the Carlyle Group

• $150 million in first fund with buyout & growth focus

• Majority transactions but open to selective minority investments

• $10-$40 million of equity per transaction

• Target gross IRR of 25%-30%

• Proven track record of originating proprietary transactions

• Completed the cycle of returning money to LPs in excess of amount invested


Graycliff Partners Overview

12

Successful Latin American program, launched in 2007 with proven track record

Spin-off from HSBC in 2011

Fund I invested in 9 deals in 5 countries in Latin America

Plans to raise Fund II with $250 million

Pan-regional fund with focus on Brazil and Mexico

Emphasis on middle market and “below-the-radar” deals

Value added growth equity strategy

Offices in São Paulo and New York

Team working together since 1991

Strong proprietary deal flow

Graycliff is an industry generalist, although its sector focus is driven by three main investment themes:

Consumer companies positioned to capture the rising middle class purchasing power and increased disposable income

Industries which are part of the value chain of Latin American natural resources or infrastructure needs

Industries where our financial expertise is a key strategic asset


Sura Mexico Overview

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Sura is the new brand that was launched in Mexico in 2012 after Grupo de Inversiones Suramericana acquired the asset management businesses of ING in Latinamerica

After the acquisition Sura emerged as the #1 retirement services company in Latinamerica


Sura Mexico Overview

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Sura in Mexico

US$ 20 billion of assets under management through pension funds (Afore Sura, US$ 17 billion) and third party funds. Afore Sura is the third largest pension fund in Mexico. • 3 thousand employees • 6 million clients • 13 years of experience

• US$ 120 billion of assets under management • 37 thousand employees • 25 million clients • Presence in 8 countries in Latin America (Mexico, Chile, Peru, Uruguay, El Salvador,

Dominican Republic, Panama and Colombia) • 67 years of experience in Banking, Insurance, Retirement Funds (Afore) and other

businesses

Sura Asset Management


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Discussion: Assessing Mexico’s Investment Climate

1) Current State of the Market

2) Fundraising/Investor Attitudes

3) Investment/Deal Flow

4) Portfolio Management

5) Exits

6) Q&A

7) Closing Remarks


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Annual GDP Growth for Select Markets, 2010-2013*

5.4%

3.8% 3.6% 3.7%

0%

2%

4%

6%

8%

10%

12%

2010 2011* 2012* 2013*

Brazil

China

India

Russia

United States

European Union

Mexico

*Projected. Source: International Monetary Fund.

Annex: Annual GDP growth for Mexico still outpaces that for developed markets and near-term growth expectations are on par with Brazil


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GDP Per Capita (adjusted for PPP), 2010-2013*

0

10,000

20,000

30,000

40,000

50,000

60,000

India China Brazil Latin America & The

Caribbean

Mexico Russia European Union

United States

IMF

Inte

rnat

iona

l Dol

lars

2010

2011*

2012*

2013*

*Projected. Source: International Monetary Fund.

Annex: Relative to the BICs, purchasing power is strong for Mexico


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Annex: Despite increased fundraising interest in Lat Am, investor appetite for Mexico is still nascent and the market has room for growth

Source: Emerging Markets Private Equity Association.

209

70

227

293

455

67

150

124

9

10

13

10

0

2

4

6

8

10

12

14

0

50

100

150

200

250

300

350

400

450

500

2008 2009 2010 Q3 2011

No.

of D

eals

US$

Mill

ions

Fundraising

Investment

Deals

Fundraising and Investment Data, 2008-Q3 2011


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Annex: Within Latin America, Mexico represents less than 5% of fundraising capital and total investment since 2008


182 209 70 227 293 0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007 2008 2009 2010 Q3 2011

US$

Mill

ions

Mexico

Brazil

China

India

Russia


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Investments by Sector as a Percentage of Total Number of Deals, Q1 2010-Q3 2011


Annex: A diversified array of sectors in the region are attracting funding

Consumer, 32%

Banking and Financial Services, 23%

Infrastructure, 14%

Agribusiness, 9%

Healthcare and Life Sciences, 9%

Media and Telecom, 9%

Education, 5%

Consumer

Banking and Financial Services

Infrastructure

Agribusiness

Healthcare and Life Sciences

Media and Telecom

Education


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Annex: Local capital is stepping in via CKD structure

Fund Manager (GP)

Issuing Trust (Fideicomiso Emisor)

Portfolio Company

Portfolio Company

Portfolio Company

Portfolio Company

Issuance of CKD

Proceeds from CKD

Bolsa Mexicana de Valores

Pension Funds (Afores)

Investment in

CKD Technical Committee

Advisory Committee

Source: CKD Prospectuses, IFLR.


Annex: EMPEA Webcast Series

Launched in 2008, EMPEA has hosted over 20 webcasts to date drawing more than 2,600 participants from 70 countries and more than 500 unique firms.

Webcast Topics have included: • Managing Risk in EM PE Transactions

• Changing Landscape of EM PE Fund Formation

• The MENA Region: An Overview and Update

• The Impact of the AIFM Directive on PE and VC in Emerging Markets

• Private Equity in North Africa: What Every LP Must Know

• The Impact of the Dodd-Frank Act on Investment Adviser Regulation in the U.S.

• Private Equity Investing in the Middle East, North Africa and South Asia

• Evolving Key Terms & Conditions in Today’s EM PE

• Managing Environmental and Social Risks and Opportunities

• How Will the ILPA Principles Shape GP-LP Relationships in Emerging Markets?

• Catching the Rising Tide of Chinese RMB Funds

• Strategies to Address and Prevent LP Defaults

• Broken BRICs (a four-part series)

• Role of the Secondaries Industry in Emerging Markets Private Equity

• Corporate Governance in Emerging Markets Private Equity

• Marketing Your Fund to LPs in Today’s Market Conditions

• Risk Management in Emerging Markets Private Equity

• Recruiting and Talent Management in Emerging Markets Private Equity

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Annex: EMPEA Contact Information

For follow-up questions on this or other webcasts, please contact Shannon Stroud at [email protected] or +1.202.333.8171. For Members-Only Research Requests or further information on the data presented in this webcast, please contact [email protected] or +1.202.333.8171. Please also visit www.empea.net for further information.

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Annex: AMEXCAP Overview

In 2003 Mexican Private Equity Fund Managers Association (AMEXCAP) was

incorporated.

In 2006, establishment of Corporación Mexicana de Inversiones de Capital, S.A.

de C.V. (also known as “Fondo de Fondos”)

Today AMEXCAP has more than 42 GPs with total AUM of US 7.5bn

Over 350 companies and 37,000 employees have been positively impacted by

PE in Mexico

8 backed IPOs since 2004 (35% of total IPOs during the same period)

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Annex: Who’s Mexico?

BIG country

14th-largest country in the world with an

area of 2.0m km2.

3x the size of Texas

LOTS of people

12th-largest population in the world with more

than 111m people.

50% under 25

years

WELL positioned

The closeness to biggest economy

in the world is key.

5 days by sea to NY vs. 15 from

Brazil

GREAT biodiversity

4th-largest biodiversity

worldwide with shores in two

oceans. 9,330km of coast line, 25% more

than Brazil

LARGE economy

2nd-largest economy in LatAm

and 13th in the world.

~US$1tn nominal

GDP

GROWING middle clas OPEN

Free-trade agreements with

more than 53 countries

10th-most

popular tourist destination

GDP per capita is USD 10k

~2x GDP per capita in China

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Annex: Strong Demographics

Source: BMV

Mexico tends to have a demographic premium in the following 25 years which will result in higher consumption and production.

The total population will grow from 112 million in 2010 to 127 million in 2030.

Mexico´s Middle Class as a percentage of the total population grew 5 ppts from 2000 to 2011. During the same period, the lower middle class contracted 8 ppts.

More women in the workforce, that entail higher disposable income

With over 112 million people on an average age of 29, the domestic market is large and growing (demographic bonus). Consumer durables demand is expected to rise as the population ages.

Population by age group (2010) Million inhabitants

Population by age group (2030) Million inhabitants

6.0 4.0 2.0 0.0 2.0 4.0 6.0

0-511-1521-2531-3541-4551-5561-6571-7581-85

91-100+

Males Females

6.0 4.0 2.0 0.0 2.0 4.0 6.0

0-511-1521-2531-3541-4551-5561-6571-7581-85

91-100+

Males Females

49M 72M

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Annex: CKDs

Mexican Pension Funds can invest up to 8% of the assets under management.(1)

Pension Funds have invested close to USD$ 3 billion in this instrument through 16 different

managers.

Approximately 20% of Pension Funds Private Equity allocation has been invested in 8 companies.

Infrastructure35%

Real Estate32%

Private Equity16%

Financial17%

Allocation of Resources

Source: BMV

Mexican Pension Funds can now invest in Mexican PE

(1) Source: CONSAR

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Annex: PE backed IPOs

IPOs in Mexico 2004 2005 2006 2007 2008 2010 2011 Total

Private Equity support 1 2 1 2 1 1 0 8% vs Total 50% 40% 33% 50% 50% 20% 0% 35%

No Private Equity support 1 3 2 2 1 4 2 15% vs Total 50% 60% 67% 50% 50% 80% 100% 65%

Total 2 5 3 4 2 5 2 23

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http://www.sportsworld.com.mx/index.php�


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Annex: Key deal type/investment opportunities

Investment opportunities Examples of ALAF I

Scarcity of capital and local tax incentives for SMEs drive the need for financial products

Docuformas ARG

Rentandes Business solutions that replace CAPEX with OPEX solutions, as well as other outsourcing solutions Petrotiger

Need for increased efficiency and technology solutions drive IT needs throughout the region

RedIT ITS

Growing consumption by lower and middle income tiers drive retail and low income housing needs

IASA Handell

D1 Irradius

Sectors with high growth potential and M&A activity, ensuring value creation during the investment and diverse options at exit

Condor Travel

• The profile of a good deal opportunity is one seeking growth capital in specialized market niches, preferably in the service sector, with low capital intensity and strong free cash flow generation


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Annex: Portfolio Management: the case of ARG Leasing

Strategic Issues: • Expand portfolio of operating leases in transportation equipment

• Diversify the type of leased assets

• Follow a variable compensation scheme for sales

• Strengthen customer service to create a one-stop-one-shop solution

• ERP (Microsoft Dynamics) has begun the implementation phase

Value Creation Opportunities: • Meet customer cash flow requirements

• Consolidation play with other leasing companies and/or acquisition

Risk Identification and Management: • Client preferences for renting over operating leases

• Post-sale service

• Ability to secure medium and long term financing resources

EBIT Revenues Portfolio

2009 2010 2011

• Due to Aureos’ prudent investment strategies, the overall performance of the portfolio remained healthy throughout the recent financial crisis.

• Through Aureos’ active monitoring and “on the ground” presence, portfolio companies can react swiftly to market conditions, deploy resources and minimize potential risks.


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Annex: Outlook for the region Positive Outlook for 2012 due to:

PE Opportunities

• PE equity penetration in the region has lagged and represents an area of opportunity

• SMEs will require funding to scale up businesses and attend the increase in demand

• Scarce bank financing to the private sector presents an opportunity for the development of PE

• Commercial banks have focused more on consumer and government financing than lending to the private sector

Market Opportunities

• Solid growth potential outpacing advanced economies

• Growing young population with increasing purchasing power

• A promising population pyramid totaling 380 million inhabitants

• Middle income households have and will continue to expand translating into a strong domestic market for goods and services as disposable income grows

• Responsible and prudent macroeconomic policies have led to stability


Annex: EMX Capital Overview - Team

32

Not one team member departed after Carlyle spin-off in 2009

EMX team will continue to advise Carlyle Mexico Partners (“CMP”)

Shared values and work ethic

Teamwork

Integrity

Accountability

Discipline

Social Responsibility

• Over 6 years successfully investing together

• Co-founded EMX Capital with the support of The Carlyle Group1

1. Please note that EMX Capital is not sponsored or controlled by The Carlyle Group and Carlyle will not be involved with, or responsible for, investment decisions of EMX Capital.


Annex: EMX Capital Overview - Performance

33

• CMP is a top performer among all CalPERS ’04-06 vintage funds

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

-40.0 % -20.0 % 0.0 % 20.0 % 40.0 % 60.0 % 80.0 %

Cas

h re

turn

ed /

cash

cal

led

IRR (Net of Fees)

Each dot represents one fund's performanceRed dot represents Carlyle Mexico Partners'performance

LOW IRR &Cash

Returned

HIGH IRR &Cash

Returned

87% percentile

88% percentile

Note: The chart above has been derived from publicly available information describing CalPERS’ Alternative Investment Management Fund Performance Review as of June 30, 2011 (the “CalPERS Review”), and includes all investment funds listed on the CalPERS Review on an unweighted basis with a “vintage year” between 2004 and 2006. Such data has not been independently verified by EMX Capital. The chart above includes data with respect to investment funds comprising the CalPERS Review that differ significantly from CMP, including as to geographic focus, overall investment program and in other material respects.

Past performance is not necessarily indicative of future results and there can be no assurance that the Fund will achieve comparable results.


Annex: EMX Capital Overview – Case Study 1

34

Investment Thesis • Targets base of socioeconomic pyramid. Direct selling

business ties into Mexican lifestyle. Robust management

Key Post-Acquisition Initiatives • CEO invested in equity plan • Launched Central America expansion • Independent board members & committees • Doubled capacity of Mexico’s facilities • Accessed public debt markets

Results • 2006 - 20011CAGR: revenues 12% -- EBITDA 18% • Recap in March ’10 $6.45mm (25.5% of original

investment) returned to investors 3.7%

6.3%

15.6% 15.8%

18.1%

Avon Oriflame Tupp Natura Arabela

EBITDA CAGR ('06-'11)

$87

$115 $125

$169 $195 $200

7.9%

9.6% 9.6% 10.6% 11.0% 10.5%

2006 2007 2008 2009 2010 2011

EBITDA & EBITDA Margin Mexican Pesos, Million

• Arabela: direct seller of beauty and personal care products through network of 190,000 re-sellers


Annex: EMX Capital Overview – Case Study 2

35

• HTC: provider of value added call center services to US corporations

Investment Thesis

• Global outsourcing trend. Strong management team. Ties to growing U.S. Hispanic Market

Key Post-Acquisition Initiatives

• Restructured sales team. Performance–based compensation

• New reporting processes and metrics

• ISO 27000 certification

• Management stock-option plan

Results

• Sold to Teleperformance Group in 2007: 78% gross IRR1

• No Post-Closing price adjustments

1. Does not include interest gains on escrow account and assumes the collection of the full amount of the indemnity escrow and releases due on Nov. 16th, 2012. See “notice to recipients”

5 7

15

2005 2006 LTM Oct 07

EBITDA USD Million

900

2500

2005 Oct-07

Employees


Annex: Graycliff Partners Overview

36

Investment Themes in Our Current Investment Portfolio

Company Business Overview Country Investment Date Investment Theme

Door-to-door seller of home products and cosmetics

Mexico September 2007 Middle-class purchasing

power

Onshore oil field services provider

Regional September 2007 Natural resources

ERP application integration and outsourcing

Argentina December 2009 Country-specific advantage

Post-secondary and K-12 education

Chile July 2010 Middle-class purchasing

power

Food ingredient manufacturer

Brazil August 2010 Middle-class purchasing

power

English language school chain

Mexico August 2010 Middle-class purchasing

power

Consumer finance Colombia December 2010 Financial expertise

Staffing company Brazil February 2011 Country-specific advantage

Pharmaceuticals Brazil November 2011 Middle-class purchasing

power



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24%29%

3%9%

36% 37%

2%

21%

4%

35%

1.3x

0.4x0.6x

1.5x

0.7x

0%

5%

10%

15%

20%

25%

30%

35%

40%

United States Europe Africa Asia Pacific Latin America0.0x

0.2x

0.4x

0.6x

0.8x

1.0x

1.2x

1.4x

1.6x

Global GDP share (%) Global PE share (%) Private Equity Penetration ratio

Latin America: A Compelling Opportunity

• Disciplined monetary and fiscal policies

• International reserves larger than in 2008

• Banks and companies less leveraged than prior to economic downturn

• Emergence of large middle-class with increased purchasing power

• Significant portion of the region’s GDP from middle market companies with limited access to traditional financing

• Increased global appetite and institutional and policy reforms

– Significantly oversubscribed IPOs and debt issuances in the last two years



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Grupo ASSA Worldwide SL (ASSA) • Founded in 1992, operates in Argentina, Brazil, Mexico, Chile, USA and Europe

• Regional leader in ERP (SAP and Oracle) application integration and outsourcing with an offshore delivery model

• During 2011, ASSA was able to deliver solid results due to cost cutting and high utilization rates across its staff structure.

• ASSA’s capital structure, one of its weakness at the time of our investment, is back to conservative leverage ratios, with acceptable interest rates and mainly concentrated in the long term.

• ASSA Mexico grew revenues over 50% vs. 2010, the highest growth rate amongst ASSA Latin American operations

• Revenue and EBITDA grew 39% and 89% respectively when compared to 2010.

• 2012 projected revenues of over $100 million and EBITDA of over US$ 10 million

Investment Thesis: Acquire an independent player with a strong competitive position and pan regional reach Capitalize on Latin America’s potential becoming an IT services hub for local and global players Support a seasoned and highly regarded top management team Company with long-term relationships with first-class clients, and the opportunity to increase wallet share with its clients base

$10.7

$8.4

$5.7

$4.4

10.5% 10.6%

7.7%

11.7%

-

2.0

4.0

6.0

8.0

10.0

12.0

2009 2010 2011 2012 E

USD

mill

ion

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%Adjusted EBITDAEBITDA Margin

$48.4$57.4

$79.8

$100.439.1%

25.8%

5.7%

18.5%

-

20.0

40.0

60.0

80.0

100.0

120.0

2009 2010 2011 2012 E

USD

mill

ion

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%Net RevenuesNet Revenues Growth


Founded in Mexico City in 1995, Nexxus Capital, S.A. de C.V. (“Nexxus”) is an independent

employee-owned private equity firm targeting Mexican medium-size companies

US$660mm in capital raised and co investments of US$110mm

Only Mexican Private Equity Fund manager that has created five funds since inception

Successful track record achieving unleveraged Gross IRR´s of over 25% in US Dollars and over 30% in MXP, key investments include Homex, Genomma Lab and Sports World

High Corporate Governance Standards, with heavy hands-on approach

Introduction

Nexxus Capital

39

Annex: Nexxus Capital Overview


40

Annex: Nexxus Capital Investment Strategy

Look for small & medium sized domestic firms with high growth potential

• Provide expansion capital to unleash growth

• Family firms usually attractive target

Small & medium sized businesses

Take advantage on growth in demographics and income levels

• Consumption typically more resilient than firms catering to export or high-end markets

Anticipate Market trends based on developments in other markets

• e.g., growth in healthcare and education expenses

“Middle market” with favorable trends

History of investing in wide range of sectors

• e.g., low income housing, consumer products, manufacturing, leisure & entertainment, education, consumer credit, hotel chains.

• Moving away from manufacturing in recent years

Wide range of target sectors

Wide range of holding period to capitalize on low-hanging fruits & extract maximum value from successful companies

• Remain invested in shares of companies after IPO to gain additional upside (e.g., Homex, Genomma Lab, and Sports World)

3 – 6 year investment period

Historically 40% – 50% of invested capital used for minority stakes

• Insist on strong corporate governance rights to guarantee operating influence Willing to invest in

minority stakes

Focus on expansion capital for companies with high growth potential

Nexxus Capital has never leveraged any of the transactions

• At the portfolio company level, debt has been moderate (1.0x to 1.5x debt to EBITDA) Unleveraged transactions


Annex: Nexxus Investment Evolution

41

IRR

-

+

Moving Away from Manufacturing, Improving Returns per Investment and Increasing Investment Size

•Fund III Investments at Fair Market Value •* * Without considering cross over investments • Average Investment size Considering Co-Investments

Average investment size = USD 20 MM

Average investment size = USD 32 MM **

Average investment size = USD 34 MM

Manufacturing Services

Fund I

Manufactuing Manufacturing Services

Fund II


Fund III


Fund IV & V

Investment size between USD 30 MM & 60 MM


Annex: Sura Mexico Overview

42

Who is Grupo de Inversiones Suramericana?

• Its financial services businesses have more than 14 millions clients in Colombia; #1 Bank, #1 Insurance Services, #2 Retirement Services (Afore)

• It has more than US$ 54 billion in assets with more than 30,000 employees

• It trades in the Colombian Stock Exchange (Bolsa de Valores de Colombia) and is present in various international financial markets (Madrid and New York)

• It has an Investment Grade rating by S&P and Fitch Ratings

an empea professional development webcast · 2017-09-01 · an empea professional development...

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