Altum Capital Issues CKD Certificates for MXN 1,813 Million
By: Altum Capital
The offering of CKDs was mainly subscribed by Mexican pension funds (AFORES) and insurance companies. The vehicle with the tickers ALTUMCK 19, ALTUMCK 19-2 y ALTUMCK 19-3 aims to fund non-banking financial institutions and SMEs in Mexico, promoting financial inclusion in the country.
Altum Capital will invest the proceeds from the offering over the next two years, originating senior secured structured loans ranging from MXN 50 to 150 million with terms of 3 to 5 years.
In its five years of operations, Altum Capital has originated and structured loans in Mexico for an aggregate amount of more than MXN 4,000 million. Currently Altum has a loan portfolio of more than MXN 1,700 million, diversified in 55 structured loan investments in different sectors.
"With the funds raised through the CKD, Altum Capital substantially increases its Assets under Management (AuM) and financing capabilities, thereby further helping Mexican SMEs invest and grow", said Legorreta, Altum Capital's CEO and Founder; "Mexico has one of the lowest levels of private credit penetration as a percentage of GDP of the OECD. We believe Altum Capital, now funded with Mexican institutional investor capital, is well positioned to narrow this credit gap and provide the much needed funding requirements of Mexican firms with limited access to financing resources".
The financial advisors and placement intermediaries were Investia Asesores Financieros, Actinver Casa de Bolsa and Invex Casa de Bolsa. The legal and tax counsel were Mijares, Angoitia, Cortés y Fuentes, S.C., Galicia Abogados, S.C., and Creel Abogados, S.C. Banco Invex is the Trust Issuer and the Certificate Holders' Representative is Monex Casa de Bolsa.
Founded in 2014, Altum Capital is an investment fund specialized in senior secured private debt. As of June 2019, Altum Capital had invested in 78 senior secured structured credit transactions in Mexico.
Altum Capital's investment thesis consists in pursuing superior risk adjusted returns for investors, providing direct access to private credit opportunities that exist given Mexico's low credit penetration.
Altum Capital has funded its investment portfolio through six equity private placements with investors from Mexico and abroad, and has obtained credit lines from domestic and international banks including the International Finance Corporation.
LG&A is the Fund Manager and is run by Gerardo Legorreta, Miguel Gómez, Michelle Schlam, Eduardo Legorreta and Francisco Salas, who have vast experience in the financial industry. LG&A currently manages MXN 2,000 million (excluding the amount issued in the CKD Offering) through two private credit investment strategies.
María José González de Cossío, Partner