Summary of Proposed Investment
Project Number
8436
Company Name
ZN Mexico Capital Growth Fund Ltd.
Date SPI Disclosed
Nov 10, 1997
Country
Mexico
Industry
other
Status
Completed
Sector
Private Equity/Venture Cap Fund - Country
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Dec 30, 1997
Signed : Dec 17, 1998
Invested : Nov 15, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico - ZN Mexico Capital Growth Fund Ltd |
| Region | Latin America and the Caribbean |
| Sector |
Projected Board DateDecember 22, 1997
Company NameZN Mexico Capital Growth Fund Ltd, ZN Management Ltd
Technical Partner and/or Major Shareholders
The Fund is sponsored by Nexxus Capital (Nexxus), an investment banking advisory company established by a group of experienced Mexican professionals and Zephyr Management Inc. (Zephyr), a US private equity management firm. Nexxus Principals are led by Mr. José Juan Alvarez, 48, who is a managing partner of Nexxus and a former head of corporate banking at Grupo Financiero GBM Atlantico. Zephyr is headed by Mr. Thomas C. Barry the former CEO of Rockefeller & Co.
Project Cost Including proposed IFC investment
The fund is expected to range between, US$ 50 - 75 million. IFC will invest US$15 million or 20%, whichever is less, of the total capitalization of ZN Mexico Capital Growth Fund Ltd, and up to 20% of ZN Management Ltd the management company of the fund.
Location of project and Description of site
Mexico
Description of Company and Purpose of Project
The project consists of setting up a ten-year, US$75 million private equity fund targeting Mexican small and medium-sized enterprises (SMEs) with sales no greater than US$100 million. The Fund’s principal investment strategy is to take significant equity interests in SMEs with strong growth potential and needing financial restructuring, risk capital strengthening and/or managerial assistance. IFC through this project will help increase the flow of equity finance to Mexican SMEs and help the development of Mexico’s equity market.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. The Fund will be required to undertake an environmental review of eligible investee companies'' operations. In addition, IFC will assess ZN Management capability to carry out environmental reviews of each investee company.
| Date SPI sent to PIC | November 10, 1997 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
L:\CLACM\MARTELLI\ZNFUND\ZNSPI.DOC
November 7, 1997 4:53 PM
Sponsor / Cost / Location
Related ESRS/ERS
