The Fund is sponsored by Nexxus Capital, SC (Nexxus Capital), a Mexican company jointly owned by Luis Harvey and Arturo Saval (the Local Partners). Ten Mexican professionals comprise the Nexxus team: Luis Harvey (Co-Founding Partner and Senior Managing Director), Arturo Saval (Co-Founding Partner and Senior Managing Director), Alejandro Diazayas (Managing Director),  Roberto Langenauer (Managing Director), Roberto Terrazas (Director), Juan Pablo Visoso (Director), Enrique Castillo (Director), Juan Carlos Gavito (Associate), Alejandro Saiz (Associate) and Alejandro Gorozpe (Controller). Nexxus Capital, SC has recently celebrated its 14th year anniversary and its management team, as a group, has been actively managing private equity investments for 10 years. The sponsor has over $300 million under management with both of its private equity funds and co-investors.

The proposed IFC equity investment is the lesser of $25 million or 20% of the total capital commitments of the Fund for capital contributions as well as management fees and expenses.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

* These investment figures are indicative

The Fund will be formed as a Canadian limited partnership. The geographical focus of the investments will be Mexico. Also, the Fund could invest up to 20% of its capitalization in companies located in Central America and the US when these investments are part of a Mexican investment strategy. The fund management team will be operating from offices in Mexico City.

The Fund will contribute to the economic development of Mexico by supporting six to 10 medium size companies. Shrinking bank lending has left middle-market companies with few funding alternatives. The Fund is well positioned in Mexico to invest in good companies that are undervalued and need a strong partner to help them develop into stronger and better managed companies to succeed in an increasingly competitive global marketplace. The experience of the Nexxus team in private equity investment, financial restructuring and corporate governance will be important components of these companies’ growth and development. IFC Role: Catalytic role. IFC’s investment will help the Fund reach critical economic size. Although the Nexxus team has raised two prior funds, this Fund is the first they will fundraise and manage on their own. Institutional investor fund raising is expected to be enhanced by IFC’s early investment. Governance. IFC expects to participate on the Fund’s Advisory Committee. Structuring. IFC will negotiate to align the Fund’s structuring with best market practices. Sustainability of the investees. IFC will contribute to the sustainability of the Fund’s investments by playing an important role in the definition of corporate governance and environmental standards to be applied.

This is a category FI Type 2 project according to IFC’s Environmental and Social Review Procedure. As such, the management team has committed: (i) to undertaking an environmental and social review of each sub-project; (ii) to requiring all sub-projects to be carried out and operated in compliance with applicable host country environmental; health and safety requirements, in accordance with IFC safeguard policies and consistent with IFC''s Exclusion List; (iii) to requiring that Category A sub-projects meet the World Bank Group’s applicable environmental, health and safety guidelines; and (iv) to obtaining IFC’s clearance prior to making any Category A investment.
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