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NorthGate Capital Completes a MXN$4b Offer for CKD Fund

23 September 2015

(Press Release) Northgate Capital, a global private equity and venture capital fund manager, successfully completed a $4 billion peso Quasi-Equity/Mezzanine CKD offer through the Mexican Stock Exchange. Banorte Ixe acted as Arranger and Joint-Bookrunner while Morgan Stanley acted as Joint-Bookrunner.

This transaction will allow Northgate to perform debt structured transactions with medium-sized Mexican companies that require financing for Capex, strategic acquisitions, operation expansions, debt restructuring or equity reconfiguration.

Oscar Alvarado and Mauricio Del Moral, who have more than 42 years of joint experience in the financial sector performing structured financings in the Mexican market, co-lead this new fund for Northgate.

“This offer will allow Northgate’s investors to access the Mexican middle market, where there is great growth potential, with secured structures that provide an attractive risk-return balance, continuous cash flows, and a predetermined exit date”, stated Oscar Alvarado, Director and Co-Head of this new fund for Northgate Capital Mexico.

“This new fund will give medium-sized Mexican companies access to an alternative source of financing, which has not been common in Mexico and allows for higher leverage and longer tenors, which enables companies to perform their organic and inorganic expansion plans”, stated Mauricio Del Moral, Director and Co-Head of this new fund for Northgate Capital Mexico.

With this transaction, Northgate Capital will now manage two funds in Mexico though CKDs, with committed capital of more than $7 billion pesos.