ACP has significant experience advising leading specialty finance companies that address the growing demand for innovative financial solutions from a large portion of the under-served population in Latin America that has limited access to traditional financial banking services. ACP has raised financing directly for specialty finance companies or through portfolio sales in sectors including consumer loans, payroll loans, SME loans, leasing, group loans and low-income mortgages among others.
Bruce Anfindsen – Partner
Dennis Holtzapffel – Managing Director
Walter Zegers – Managing Director
Growth Financing – Payroll Loans
In two separate transactions, ACP raised $25+ million for a leading payroll lending company in Mexico from both a US-based emerging market asset manager and a local Mexican credit fund. In 2021, with local banking markets essentially shut down during COVID-19, the business was severely impacted. However pent-up demand for the Company’s products created a strong pipeline of opportunities. Funds raised by ACP were used to finance the expansion of consumer loans from the addition of new and existing agreements with federal and municipal government employees and unions in Mexico.
ACP raised $18 million for a leading Monterrey, Mexico-based furniture retailer to fund the company’s consumer credit offered to its target customer base of middle-income clients. At the time local banks were unwilling to provide financing given the declining financial profile of the company and market conditions in the country. Strong investor interest from New York and Mexico based investors led to a competitive process which yielded optimal terms for the Company from a leading financial institution in Mexico.
Purchase of Mortgage Portfolio
ACP was engaged by a Mexican group to raise capital to acquire low-income housing development projects in Monterrey, Mexico. At the time, a dislocation in the Mexican housing sector caused by a lack of access to local funding to potential home buyers and defaults by major homebuilders created an opportunity to acquire unfinished housing development projects at distressed prices. A competitive process managed by ACP enabled our client to find the optimal financial partner, with an initial commitment to purchase MXN 180 million in loans, and capacity to increase its credit limits to fund housing development projects with similar characteristics over the next several years.
ACP Capital Markets was engaged by the third largest payroll lending company in Mexico focused on government agencies and teachers‘ unions. ACP led a comprehensive roadshow in New York with leading global credit funds, emerging markets focused hedge funds, and principal lending groups of global investment banks The competitive process led to multiple terms sheets for a ~MXN 1bn credit facility on highly attractive terms. In the final stage of closing the transaction, a strategic player approached Total Credit to acquire a controlling stake of the Company which ultimately was the best alternative for the shareholders.
Acquisition of Mortgage Loans
ACP advised a leading provider and servicer of mortgages based in Mexico. The Company had the opportunity to buy a portfolio of performing and non-performing mortgage loans that it serviced from an international financial institution seeking liquidity The Company was looking for a long-term financial partner to participate in this transaction and future transactions to acquire existing mortgage portfolios and companies in the sector. ACP contacted potential investors and arranged for management meetings in New York. ACP received multiple term sheets and closed with an investor which allowed the Company to acquire the portfolio on highly attractive terms.
Acquisition of a Loan Portfolio – Payroll Loans
ACP Capital Markets was engaged by a local Mexico City-based credit fund to find a co-investor to acquire a $15M portfolio of loans from a leading payroll lending company in Mexico. ACP introduced the Mexican credit fund to a NY-based hedge fund with interest in specialty finance in Mexico / Latin America and ultimately closed on the portfolio acquisition on attractive terms.