Several leading institutional investors signed and committed on May 14th an aggregate amount in excess of USD 190 million to the Central American Mezzanine Infrastructure Fund II LP, an Ontario limited partnership (the "Fund" or "CAMIF II"). These commitments are allocated over three tranches: USD 52 million for the equity tranche, USD 40.5 million for the mezzanine tranche and USD 100 million for the senior loan tranche.
The target size of CAMIF II is USD 250 million which is expected to be realized within next twelve months.
The Netherlands Development Finance Company FMO invested USD 17.5 million in the mezzanine tranche, being the single largest investor in this tranche and USD 12.5 million in the equity tranche. The senior loan tranche has been fully subscribed by the Inter-American Development Bank (IDB) with an amount of USD 100 million. The International Finance Corporation (IFC) provided also USD 30 million (with USD 17 million in equity and the remainder in mezzanine). FinnFund, Obviam/SIFEM and Proparco (all development finance institutions from respectively: Finland, Switzerland and France) invested each USD 10 million in the aggregate. The General Partner will invest USD 2.5 million in CAMIF II's equity tranche.
CAMIF II will be managed by LAP Latin American Partners LLC (LAP), which is the same team that has successfully invested CAMIF I. LAP is a team of dedicated investment professionals with extensive experience in lending and private equity for infrastructure in Latin America. Building close relations with local sponsors is key to their investment style, and the company has offices in Mexico and Central America, and headquarters in Washington, D.C.
With the USD150 million of CAMIF I being fully invested, the fund manager already built an impressive pipeline of investments opportunities for CAMIF II which are expected to be structured and contracted soon. CAMIF II will build a well-diversified portfolio in the region with investments in private sector infrastructure, including renewable energy, telecommunications, as well as natural resources.
Mrs Linda Broekhuizen, FMO's Chief Investment Officer, added:
"At FMO we are proud to be associated with this team of professionals who are dedicated to make sound and sustainable investments in this region. Through this group of professional fund managers, our long term commitment and relations with the private sector entrepreneurs in these countries are strengthened and deepened. We are grateful to joining CAMIF II and LAP on this joint journey towards a sustainable economy for current and future generations."