Latin America: Mota Engil to launch CerPi investment fund in Mexico 

18 June 2018 - 12:00 am UTC

Portuguese developer Grupo Mota Engil is preparing to launch a CerPi investment fund, according to documentation filed with the Mexican National Banking Regulator (CNBV). 

The developer expects to raise around USD 200m for the investment vehicle from Mexican pension funds when it launches in the coming months, a source familiar with the process said.

A spokesperson for Mota Engil declined to comment on fundraising.  

The source added that managers in the sector often recycle their capital, once they have established a portfolio of assets demonstrated success in winning mandates and developing projects. Given its track record, the CerPi vehicle allows managers to access more investors.

According to the filings, the fund will be managed by Administradora para el Desarrollo-MEM, S.A. de C.V.  It will be registered under the ticker MOTAPI 18. 
The long-term, 50-year investment vehicle will have a five-year investment period, with two one-year extension periods. It can invest in equity or mezzanine debt facilities.

As with all CerPi funds, the investments can be spread throughout Latin America but a minimum of 10% must be invested in Mexico.  

The Mota Engil fund will focus investments on three areas; energy, infrastructure and tourism. The energy projects could be combined-cycle generation, hydroelectric facilities, gas pipelines or transmission lines. The infrastructure projects will be in the transport or social infrastructure sectors. The tourism projects would be real estate investments in hotels or investments in the wider tourist sector. 

Local investment bank MTH Capital is the structuring agent, having worked previously with Mota Engil on the bond financing of the Coatzacoalcos-Villahermosa highway maintenance PPP. 

Citibanamex is the placement agent and Creel, García–Cuéllar, Aiza y Enríquez is the legal and tax advisor for the fund. 

According to the filings, Mota Engil has invested in ten Mexican projects; six highways, two environmental projects, one tourism project and one energy project. 

Mota Engil owns 51% of local energy generation company Generadora Fénix along with the Mexican Electricians Union (SME). 

Generadora Fénix has a thirty-year contract to build, operate and maintain five hydroelectric plants and ten mini-hydro plants with a capacity of approximately 296MW as well as the rights to renovate a 1,700MW combined-cycle gas plant. 

In May, Mota Engil won the 10-year contract for the Ciudad Victoria-Altamira highway maintenance PPP in Mexico and counts the Cardel-Poza Rica and Tuxpan-Tampico highways among its local portfolio.  

Outside of Mexico, it owns stakes in two Aruban highways and is bidding on one project in Argentina’s first round of highway PPPs, the Escuintla-Puerto Quetzal highway in Guatemala and the Circuito 5 – Rutas 14 and 15 project in Uruguay. 

Other international investors to be raising CerPi investment funds include BlackRock, Blackstone, EIG, KKR, Lexington Partners and Partners Group

Mota Engil