A total of 7 CKDs* were issued in the first half of 2019, of which 5 were CERPIs. Together, they add up to 1.595 million dollars of which only 366 million dollars have been called.
The 7 issuers of the first half of 2019 were five CERPIs: Mexico Infrastructure Partners (energy); SPRUCEVIEW MEXICO (private equity), Blackstone (fund of funds), ACTIS GESTOR (fund of funds) and Harbourvest Partners (fund of funds). And two CKDs: Walton Street Capital (real estate) and ACON (private capital).
Of these issuers:
- For Walton Street Capital, is its fourth CKD that issues individually to reach total commitments of $ 1.274 billion USD in the real estate sector without considering the CKD that they jointly issued with FINSA in 2015.
- In the case of Mexico Infrastructure Partners, is its fifth issue (3 CKDs and 2 CERPIs) to complete total commitments for 728 million dollars in the infrastructure and energy sector.
- For Blackstone is its fourth CERPI as an issuer in the fund of funds sector that allows it to add commitments for 717 million dollars.
- Finally, the issuance of ACON, it is an option to acquire Series B certificates for AFOREs holding the previous CKD (ACONCK 14).
The number of issuers for the same period of 2018 (first half) was 10 (9 CKDs and one CERPI) out of a total of 38 that were issued throughout 2018. The total amount placed in 2018 was 1.649 million dollars and commitments for 6.869 million dollars. After the explosive offer of CERPIs observed in 2018 (18 in total), in the first six months of 2019 (5) it is observed that the offer takes a slower pace of growth.
The 13.098 million worth of the CKDs and CERPIs market through 133 issues represent 0.9% of GDP. The 109 CKDs in circulation are equivalent to 80% of the resources committed, while the 24 CERPIs in circulation represent 20% of the total.
The largest number of CERPIs issues continues to be funds of funds (13 of the 24 total CERPIs that have been placed), while 6 are private equity, 3 of infrastructure and the ones with the least supply have been those of energy and real estate of which only one of each has been placed.
According to the quarterly publication of CKDs & CERPIs made by 414 Capital as of July 2019, ), there is a total of 38 CKDs in pipeline that have made the process as issuer with the Mexican regulator (National Banking and Securities Commission or CNBV) of which 7 are CERPIs. With the intention of issue since 2016 there is one, while there are 11 of 2017, 14 of 2018 and 12 of 2019 which reflects the interest of many to issue. Historically there are few CKDs and CERPIs that issue in the first year.
Although this year is the beginning of a new public administration, the offer of alternative investments has been maintained through CKDs and CERPIs.
Column by Arturo Hanono
*CKDs are private equity funds that are issued in the stock market through a trust, which allows institutional investors such as AFOREs and insurance companies, among others, to participate in this asset class. In 2009 the first CKD (RCOCB_09) was issued. CKDs only invest in projects in Mexico. Although the first CERPI arises in 2016 (MIRAPI_16) it is in 2018 when 90% of the projects in which they invest are allowed to be abroad and 10% in Mexico. This situation is what causes the rise of CERPIs.
Arturo Hanono is an institutional asset manager in Mexico. He has more than 30 year's experience in the Asset Management world, of which 15 he spent as a private banker and in the last 18 years has been CIO in several Afores. He has a degree in Economics from Universidad Anáhuac (1983). For his professional thesis, he won first place in the National Stock Market Prize organized by the Mexican Stock Exchange in 1985.
You can find him at firstname.lastname@example.org