Oct 6, 2020 | News
Mexico City, Mexico (October 5, 2020) – Alta Growth Capital (“Alta”) announced today that it has completed a final close of Alta Growth Capital, Mexico Fund III, L.P. (“AGC Fund III”) with $150 million in commitments. In spite of a very challenging fundraising environment in the region, AGC Fund III achieved the same level of commitments as its prior fund. The Fund was supported by a diverse group of Mexican and international limited partners with the majority of the capital coming from outside of Latin America.
“At a time of tremendous economic and social uncertainty, we’re grateful for the support of our returning limited partners and for the trust placed in us by our new investors,” said Scott McDonough, Managing Director. “We’ve shown an ability to generate positive results over multiple fund cycles and varying economic conditions, and we look forward to deploying more capital at a time when we are seeing very interesting investment opportunities in our region.”
“Current events have reduced the availability of capital in Mexico and Latin America even more than before,” added Javier G. Teruel, Chairman of Alta Growth Capital. “With our team and strategy, we are well positioned to help fill this capital gap and achieve very good returns while, at the same time, have a positive impact by generating greater economic opportunity.”
Venable LLP acted as primary fund formation counsel for AGC Fund III. Ortiz, Sosa y Asociados, SC acted as Mexican tax counsel.
About Alta Growth Capital (www.altagc.com)
Alta Growth Capital, based in Mexico City, is one of the leading private equity funds investing in Latin America. With an investor base that includes U.S., Mexican and European institutions, Alta makes buyout and growth equity investments in small and medium-sized businesses that are poised to take advantage of the high growth opportunities in the Mexican and other Latin American markets. Financing for growth, whether equity or debt, can be difficult to obtain for companies in the Latin American lower middle market. Alta’s financing, along with its strategy to professionalize and institutionalize operations, provides opportunities for significant value creation in its portfolio companies.
Abr 15, 2020 | News
April 14, 2020, Mexico City – Alta Growth Capital (“AGC”) is pleased to announce that it recently partially exited its equity investment in Amerimed, a hospital chain specialized in providing high-quality healthcare services in key tourist destinations in Mexico, upon the successful sale of 25% of the shares in the Company to RAG Capital Partners (“RAG”), the majority shareholder of Amerimed. In addition, the transaction includes an agreement to sell AGC’s remaining equity stake in the Company to RAG at a future date to fully exit the Company.
Amerimed was founded in 1996 to meet the demand for international quality healthcare in tourist locations. The Company opened its first hospital in Puerto Vallarta in 1996, and later opened hospitals in Cancun, Cabo San Lucas, and San Jose de Los Cabos. In 2009, AGC acquired a substantial minority equity participation in Amerimed. In 2014, Amerimed sold its hospitals in Puerto Vallarta, Cabo San Lucas, and San Jose de Los Cabos, but the Company continues to operate hospitals in Cancun, Cozumel, and Playa del Carmen. Amerimed is currently a leader in providing international quality healthcare services in top tourist destinations in Mexico.
“Amerimed has played an important role in bringing full-service healthcare to popular tourist spots in Mexico. In this way, Amerimed makes travel to these areas safer for visitors,” said Rafael Payro, Managing Director of AGC. “At the same time, local residents are given an option for a higher level of health services as these areas grow in population.”
“During our time with Amerimed, we have been able to help the company grow and extend into new markets,” said Scott McDonough, Managing Director of AGC. “We are pleased to be able to exit this investment, but believe Amerimed will continue to serve an important role in these underserved communities.”
About Amerimed
Amerimed provides international quality healthcare services at Mexican tourist destinations through hospitals, clinics, and emergency facilities. After selling its Cabo San Lucas, San Jose del Cabo and Puerto Vallarta units during the fourth quarter of 2014, the Company currently operates hospitals in Cancun, Cozumel, and Playa del Carmen. Amerimed has institutional relations with foreign insurance companies, hotel operators and cruise lines to channel foreign patients, as well as institutional relations with national insurance companies, national healthcare institutions, and Mexican businesses.
Mar 11, 2020 | News
April 7, 2020, Mexico City – Alta Growth Capital (“AGC”), a leading private equity firm focused on growth investing in Latin America, recently received the LAVCA 2020 Private Equity Deal award for its investment in Fruehauf, a Mexico-based manufacturer of semi-trailers. A panel composed of judges from several international institutional investors, including development finance institutions, insurance companies, pension funds, and trusts, selected AGC’s Fruehauf investment as the best performing LATAM Private Equity deal of the year considering company transformation, IRR, EBITDA, governance, and, where relevant, social and environmental impact.
Fruehauf was a buyout deal in AGC’s Fund II that closed in 2015. AGC initially saw in Fruehauf a company with significant virtues, including positive cash flow generation and growth potential, opportunities for management and governance improvements, institutionalization and a reasonable entry valuation. The company is the Mexico operation and a legacy asset of the original Fruehauf Trailer Corporation that entered bankruptcy during the 1990’s. Fruehauf Trailer Corporation created the semi-trailer category and at one time was the leading and largest manufacturer of semi-trailers in the world.
With a new management team installed by AGC and a new growth orientation, Fruehauf saw a considerable expansion of its customer base, entered key markets, and generated significant cost efficiencies during its tenure as an AGC portfolio company. AGC exited the investment with the sale of Fruehauf to Mexican conglomerate Fultra in March 2019, less than four years after acquiring the company, having doubled both the company’s sales and EBITDA and successfully reentering the U.S. market following a 20-year absence. The deal highlights that the opportunities for growth in emerging markets are there when investors focus on under-served markets and on operational value-add that translates into long-term, sustainable shareholder value.
“We are very pleased to receive this award from LAVCA and for the recognition by the judges of our efforts to achieve outstanding results for all of our stakeholders,” said Scott McDonough, Managing Director of AGC. “We enjoyed very much being part of the amazing Fruehauf legacy and are happy that we were able to revive the Fruehauf brand in North America and bring it back to the U.S.”
“The Fruehauf outcome was the result of a tremendous effort by AGC and the company’s strengthened management team to reorient the company towards growth while making the operation more efficient and institutional,” said Javier Garcia-Teruel, Managing Director of AGC. “This investment shows that a disciplined and focused approach to private equity can be very successful in Mexico and Latin America, even under challenging economic conditions.”
About LAVCA
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.
Read more at: LAVCA
Feb 20, 2020 | News
Alta Growth Capital and Northgate Capital, two leading private equity firms focused on growth investing in Latin America, have acquired a majority equity interest in USK Urresko Holding S.A.P.I. de C.V. (“USK”), a leading manufacturer serving the North American heavy truck industry. Further terms of the transaction were not disclosed.
Erik Carlberg, Founding Partner of Alta Growth Capital, said: “Alta is excited to partner with the Aguirre family in a well-positioned market leader of steering components. The opportunities to create value and grow the business are exciting. We look forward to supporting Urresko’s impressive growth trajectory.”
Read more at Amexcap
Oct 29, 2019 | News
Global M&A Network recognized the achievements of successful dealmakers, legendary leaders, outstanding firms and the best-growth delivering transactions at the 11th Annual Americas M&A Atlas Awards Gala held last night at the Metropolitan Club of New York.
“We are delighted to honor eminent firms and top-performing dealmakers from the North and South Americas. Winners exemplify vision, tenacity, and excellence for executing transactions. We wish all the winners continued success.” Shanta Kumari, CEO and Global Group Editor, Global M&A Network.
Read more at: Global M&A Network
Oct 14, 2019 | News
Alta Growth Capital (“AGC”), a leading private equity firm focused on growth investing in Latin America, joined a group of investors, including Stella Maris Partners, and Credit Suisse’s Mexico Credit Opportunities Fund, among others, to invest in Lottus Education (“Lottus”).
Lottus is a leading platform of higher education in Mexico. Through active strategic and operational support, Lottus implements a student-centric value proposition, and accelerates the growth and development of its network of schools and institutions through organic and inorganic initiatives. Lottus offers education services to more than 40,000 students through two operating brands: Universidad Latinoamericana (“ULA”) and Universidad Tres Culturas (“UTC”).
Read more at: AMEXCAP
