EMX 2021, a secondary fund recently created by EMX Capital, acquired the entire portfolio of companies from EMX Capital’s current funds.
( EMX Capital) Mexico City, October 28, 2021.- EMX Capital, a private equity fund manager with a proven track record in Mexico, reported that it successfully concluded an innovative transaction on the secondary market, called a GP-led secondary transaction. EMX 2021, a recently created fund, obtained capital commitments from prominent private investors in Mexico, United States, and Europe, including leading groups in the global secondary market. With this valuable backing, it was able to acquire the entire portfolio of companies from EMX’s current funds. The EMX team’s experience and reputation, 18 years of consistent results, strict adherence to good corporate-governance practices, high-quality current portfolio, and disciplined process, all have allowed it to obtain sufficient capital to provide liquidity to current investors who opted to not retain their participation in the portfolio, as well as to promote new growth investments.
This is an unprecedented transaction in Mexico, and it highlights the potential for private equity investments in the country. In addition, it opens the door to an exciting new sector of international opportunities, such as with the United States,
where more than 50 billion dollars in secondary transactions are expected in 2021.
EMX Capital specializes in controlling investments via buyouts and growth capital. With this strategy, it has successfully managed various private vehicles, as well as a capital development trust (CKD, for its acroynm in Spanish).
EMX Capital recognizes the importance of distributing capital to its investors and therefore is pleased to close its 2011 funds cycle with this transaction. Particularly in the case of the CKD, which was invested over an economically adverse period, but finally managed to offer full liquidity with a positive return to the investors that remained.
EMX Capital 2021 has a five-year term in which it will seek to continue the growth and profitability of the current portfolio.
Farview Capital advised the selling funds throughout the process. Covington & Burling LLP and Ritch Mueller acted as legal advisers to the EMX funds in the transaction.