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mexico-city-dt

Direct Growth Credit

Through our Quasi-Equity/Mezzanine Debt investments, middle market Mexican companies requiring financing for Capex, strategic acquisitions, operation expansions, debt restructuring or equity reconfiguration, have access to an alternative source of financing that, in our experience, has not been common in Mexico. We believe this allows for higher leverage and longer holding periods.

Our approach permits borrowers to enter into a tailor-made debt structured transaction, optimizing the adequate ratio between debt and equity. Our approach is to actively overview company’s operations to comply with pre-agreed reporting, repayment/exit schedule with pre-payment optionality.

We pursue a cash flow lending strategy, where the source of repayment shall be the cash generation capacity of the borrower, but also rely on a strong security package.

Our focus is on the following transaction types: 

Senior Stretch

Focused on performing senior-secured transactions that are structured similarly to a high yield bond but documented as a private loan for companies that do not have access to the national or international Debt Capital Markets.

Subordinated/Mezz

Transactions that complement senior financing structures provided by commercial banks. These provide for additional leverage, subordinate positioning to the senior lenders, and typically have a longer average life.

Secondary Market

Aimed to take advantage of illiquid cycles in the markets, targeting the purchases of loans at discounts from large portfolio asset managers.