EMP Latin America reaches final close on mezzanine infra fund

The private equity firm has closed its fund at $150m, reaching its original target size. The fund will target infrastructure projects in Central America, Mexico, Colombia and the Dominican Republic.

Private equity firm EMP Latin America has reached final close on its Central American Mezzanine Infrastructure Fund (CAMIF) at $150 million, hitting its original target size.
 
CAMIF’s latest investor is the Finnish Fund for Industrial Cooperation. Previous sponsors include the Inter-American Development Bank; the International Finance Corporation, a member of the World Bank group; the Netherlands Development Finance Company; the Central American Bank of Economic Integration; and the Mexican Fondo de Fondos.
 
The fund will provide long-term mezzanine financing – a hybrid of debt and equity financing – to private infrastructure projects across Central America, Mexico, Colombia and the Dominican Republic. CAMIF says it will focus on traditional infrastructure projects in the transportation, energy and telecommunications sectors. But it might also invest in related sectors, including natural resources, tourism, agribusiness, alternative fuels, social infrastructure, and water and sanitation projects.
 
Its first mezzanine investment targeted Mexico’s largest integrated palm oil producer – Promoción e Industrialización de Palma – and comprised a combination of acquisition and expansion financing. CAMIF says it is in advanced negotiations for a number of other investments in the region. James Martin, a managing partner at EMP Latin America, pointed out that mezzanine financing is proving popular in the region as a way to attract senior debt for projects.