The new GPs that have come to Mexico to offer global private equity investments to institutional investors as of September 2021 have been: Stepstone Group (under the LOCK3PI ticker) and Oaktree Capital (OAKPI). Stepstone issued commitments for USD $400 million, while Oaktree for $224 million.
Among the recurring issuers for 2021 are: Walton Street Capital, General Atlantic, Thor Urbana and Lock. With these names, there are now 21 global and local GPs that have issued CERPIs.
Among the main issuers of CERPIs (listed by called capital) are: Harbourvest, Lock, Spruceview, General Atlantic, Blackrock and KKR.
At less than three months before the end of 2021, the committed capital of the 24 new CKDs (6) and CERPIs (18) is USD $2,543M of which USD $406M corresponds to investments in local private capital (CKDs) and USD $2,137M in global investments (CERPIs). The called capital is USD $120M for local investments vs USD $154M for global investments.
When comparing the issuances of the CKDs vs the CERPIs of 2021, it is worth highlighting:
- In the CKDs, committed capital is less than one fifth of the amount of CERPIs (USD $406M vs USD $2,137M), showing the greater interest for global private capital investments versus local.
- The initial capital call of CERPIS have been remarkably lower than that of the CKDs in 2021 (7% vs 30%). CERPIs have been shown to call the minimum necessary, while CKDs have not been so prudent.
- In the CERPIs, the figures as of September show that the total committed capital is already higher than the previous year (USD $2,137M in September vs USD $1,924M in 2020). In 2019, CERPI issuances reached USD $2,668M, while in 2018 it was USD $5,017M which represents the maximum level reached by the CERPIs (and first year institutional LPs invested in the structures).
Highlights from the local and global GPs of 2021:
- Local issuers of recurring CKDs (FINSA, Walton Street Capital, Infraestructura México and Grupo Renovables Agrícolas).
- Global issuers of recurring CERPIs (General Atlantic and Lock).
- Local issuers that open their existing portfolio to global private equity investments using CERPIs (Thor Urbana, Walton Street Capital).
- New global issuers of CERPIs that bring their global strategy (Stepstone with ticker symbol LOCK3PI, as well as Oaktree Capital).
In the list of potential issuers, that are in application and process of issuance there are two new local issuers of CKDs seeking to issue (DD3 and Finpro), while the potential issuers of CERPIs are Walton Street and Lock.
Everything indicates that 2021 will be an important year in the structuring and fundraising of vehicles for global private equity investments, and that new global issuers will continue to arrive to Mexico.
Column by Arturo Hanono
Por Funds Society, México
Por Javiera Donoso