MEXICO CCDs: Expanding Opportunity
A wave of new CCDs is making its way to the Mexican market. Size and the diversity of underlying assets are slowly increasing.
by Ben Miller
After a pause of several months, a new round of certificado de
capital de desarrollo (CCD) was gearing up to hit Mexicos
local market. The asset class, barely a year old, is still
gathering momentum as a means for the countrys pension
funds to invest in infrastructure and medium-size businesses
via private equity (PE).
Two deals that wrapped up
at the end of July diversify the markets offerings to
include real estate and high-yield debt in the equity-like
asset class that is sold in the debt market. The tradeable
certificates offer equity participation in the business plan of
the issuer, which can be a company, but is usually a fund.
Buyers are typically
Afores, or pension funds, and other large
institutional investors. Afores have pooled resources
to study the deals individually, which takes months, owed to
the novelty of the asset class.
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