Caitlin Mitchell, LAVCA
Alta Growth Capital Receives Top Latin American Private Equity Deal Award for Investment in Mexican Manufacturer
Institutional Investors Select Lafise, Actis, and Axxon for Social and Environmental Honors
New York, March 4, 2020 – The Association for Private Capital Investment in Latin America (LAVCA) today announced the winners of the 2020 Latin American Private Equity Awards. A panel of institutional investors selected Alta Growth Capital for the 2020 Private Equity Deal for their investment in Mexican semi-trailer manufacturer Fruehauf de México. Alta Growth Capital exited the investment with the sale of Fruehauf to Mexican conglomerate Fultra in March 2019 after only four years, doubling both the company’s sales and EBITDA and successfully reentering the US market following a 20-year absence.
Lafise Investment Management received the 2020 Social Responsibility in a Private Equity Deal award for their investment in Paradise Ingredients, a Costa Rican banana puree processing company with an occupational health and safety management system, including free medical services to women at the company’s clinic and provision of school supplies to single mothers. The company also offers 24-hour medical services and physical therapy, and employees receive food subsidies and transportation services.
Actis received the 2020 Environmental Responsibility in a Private Equity Deal award for their investment in Mexican renewable energy firm Zuma Energía. The company provides low-cost, clean power to communities in Mexico through its windfarms and solar plant projects, which contribute to the reduction of 1.35 million tons of CO2 emissions on a yearly basis. Zuma also implemented wild flora and fauna rescue and relocation programs, and achieved one of the lowest collision rates for wildlife at their windfarms compared to North American standards.
LAVCA awarded Axxon Group a 2020 Environmental Responsibility Private Equity Deal Honorable Mention for their investment in Brazil’s BR Marinas, the largest marina operator in South America. The company implemented a series of programs to reduce plastic consumption and to educate communities about the environment.
“LAVCA is thrilled to be seeing ESG considerations incorporated in more and more deals across sectors in Latin America making investments both profitable and sustainable,” said Ivonne Cuello, CEO of LAVCA. “More than ever, private capital investors are proactively including responsible investment practices into their strategy and applying it to both mainstream and traditionally unconventional sectors for a more comprehensive and intentional investment approach.”
Judges included international institutional investors such as development finance institutions, insurance companies, pension funds, and trusts. Scores took into consideration company transformation, IRR, EBITDA, governance, and, where relevant, social and environmental impact.
Awards are being honored during a special Latin American presentation at the PEI/PRI Responsible Investment Forum today, March 4, 2020 in New York. These deals and others are highlighted in the sixth edition of the Latin American Private Equity Deal Book and ESG Cases. Over 70 deal cases have been published by LAVCA since 2014.
LAVCA is the Association for Private Capital Investment in Latin America, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean. LAVCA’s membership is comprised of over 190 firms, from leading global investment firms active in the region and local fund managers to family offices, global sovereign wealth funds, corporate investors, and international pension plans. Member firms control assets in excess of US$65b, directed at capitalizing and growing Latin American businesses. LAVCA’s mission – to spur regional economic growth by advancing private capital investment – is accomplished through programs of research, networking forums, education and advocacy of sound public policy. Visit www.lavca.org for more information.