Mexico Development I


Last updated 13 May 2020, by Impactyield.

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The Fund is seeking up to US$50,000,000.00 to invest in Small and Medium Enterprises (“SMEs”) that need working capital injections to fuel unmet demand for their products and capital investments to replicate already proven business concepts. The Fund will make private equity investments that focus primarily on the sustainability, financial services and education industries. Fund manager has more than 15 years experience in buying, managing and selling companies.

The Fund

A $50.0 Mn USD private equity fund to be invest in 5 to 8 Mexican SMEs with an enterprise value of $6.0 to $32.0Mn at the time of investment that could increase to $ 18.0 to $96.0 Mn per investment.

- Average investment of $5.0 to $8.0 Mn over the lifetime of each investment.

- Value will come from EBITDA growth and a multiple expansion at exit.

- Expected 5.0x to 7.0x EBITDA exit multiples.

- Sale to strategic investors or private equity firms.

- Projected return of 25.0% to 35.0% per investment.

- Working capital injections to fuel unmet demand.

- Expansion capital investments to replication already proven business concepts.

- Providing development equity capital to levered real estate projects

Financial description

I .Investing in majority positions or minority positions with strong minority rights in Mexico’s small cap high growth
II. Once invested, by committing additional resources to implement value-enhancing strategies to increase innovation and social impact, as well as revenues and EBITDA. Such resources and strategies may include:
- Additional working capital injections to fuel unmet demand for products and services;
- Additional capital investments to expand production capacities, optimize operations or replicate already proven business concepts/units in different geographies;
- Implementation of company governance and financial reporting structures, IT systems and controls;
- Creation of new or complementary management positions;
- Appointment of board members, independent auditors, consultants and advisors.
III. Divesting at enhanced valuation multiples by:
a. Conducting auction type processes with international and local larger private equity funds and strategic investors currently starving for institutionalized, high quality deal flow of middle market Mexican companies:
i. Expected 6.0x to 8.0x EBITDA exit multiples;
ii. Projected gross returns in excess of 35.0%.
b. Exercising pre-arranged PUT options to company founders and/or co-investors.
c. Conducting leverage recapitalizations of asset deals where little or no debt was employed to grow the businesses but are mature enough to do so at exit.

11 years

of track record


the year funded

50,000,000 USD


Asset manager

PC Capital Partners


Headquarters location:

SDG goals

SDG targets

Equal rights to ownership basic services technology and economic resources

Encourage companies to adopt sustainable practices and sustainability reporting

Free primary and secondary education

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Increase access to financial services and markets

Impact Category

Key performance indicators

Fund overview

Asset manager: PC Capital Partners

Product track record: Fund has 11 years of track record

Target IRR: 25%

Committed Capital: 17,000,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:


Inception year: 2012

Vintage year: n.a.

Target region: , , ,

Target close date: 01/12/2012

Product term: 10

Assets under management: 50,000,000 USD (US Dollar)

Investment size: Min: 4,000,000; Max: 10,000,000; Avg: 6,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 2.5%

Carried interest: 20%

Hurdle rate: 8%%

GIIN Investors' Council Investment: Yes

Limited Partners / Investors: Fund of Funds, Multilateral Institutions, Family offices

Limited Partner / Investor Type: Development Finance Institution (DFI), Family Office, Other Institutional Investors




Phone number: (52) 55 5251-8279

If you wish to have your details removed from this database please email

Gabriel Araujo

Partner/ Vice President

Pablo Coballasi

Managing Partner

Impact Performance


Impact thesis

Mexico’s Development I – Social Impact objectives are focused on developing:
Mexico has a student population of 31 million students – only 50% of the population that is in between the ages of 15 and 18 attends High School or an equivalent technical school. Similarly, only 20% of the population that is in between the ages of 18 and 25 attends a college, university or similar institution.
Financial Services
Institutional financing for micro entrepreneurs in Mexico is scarce, with only 2.5% of penetration. We estimate the value of this market is around $8.0 Bn USD with over 13 million micro entrepreneurs
Over 50% of the Mexican Population has no access to financial services and banking services have a only a 4% penetration in the lowest income segment of the population.
- Mexico is ranked 6th for its absolute negative environmental impact worldwide
- Markets for sustainable services and products are underpenetrated while demand for them is growing
PC Capital’s investments aim to have an impact in the community while fostering economic growth. Our fund will not invest in financial institutions providing consumer credit.

Impact Management


Financial benchmark

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