Deals

Peru’s Enfoca explores GP-led deal – exclusive

The Latin America-focused private equity firm is working with Park Hill on a potential process, Secondaries Investor has learned.

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Enfoca Investments, a Peruvian private equity firm with around $700 million in assets under management, is pursuing GP-led processes on at least one of its older vintage funds, Secondaries Investor has learned.

The Lima-headquartered firm wants to give more runway to investors in its funds, according to four sources familiar with the matter.

Park Hill is running the process, Secondaries Investor understands.

Enfoca’s strategy is to tap into high-growth sectors that are benefiting from the rise of Peru’s middle class, according to its website.

Its debut buyout fund, Enfoca Descubridor 1, launched in August 2007 and raised $50 million in capital from local institutional investors, making it Peru’s largest ever investment fund, according to a 2013 report by sister title Private Equity International.

The Peruvian government gave permission to increase the target on two occasions, helping the fund eventually raise 693 million Peruvian soles ($212 million; €179.6 million) by final close in March 2011. Investors include two of Peru’s largest pension funds, AFP Integra and Prima AFP, according to PEI data.

The firm followed up in 2008 with Enfoca Andean Investment, a $110 million fund aimed at US institutional investors,  Enfoca Discovery 1, an offshore fund aimed at global development banks, funds of funds and regional family offices. That fund launched in 2010 and closed in December 2011 on $158 million, according to Enfoca’s website.

The three funds together have made eight investments, including in an airport services business, a private college and a television station.

Enfoca has made just one exit, divesting a controlling stake in hardware retailer Maestro in September 2014 as part of its $420 million sale to Chilean rival Sodimac. The deal generated a 20 percent internal rate of return, according to one of the sources. It is unclear whether the figure is net or gross.

Latin American secondaries transactions are rare: a report by advisory firm Evercore in January noted there were no sellers from the continent last year.

Enfoca did not return requests for comment. Park Hill declined to comment.