Afore Coppel buys rival Invercap for €234M to become Mexico's fifth-largest pension fund
What's the deal? Mexican pension fund manager Afore CoppelDealroom has a profile for this one. Try Dealroom → will acquire rival InvercapDealroom has a profile for this one. Try Dealroom → for 4,620 million pesos (€234.1 million) in an all-cash transaction. The purchase lifts Coppel above 1 trillion pesos (€50,675 million) in assets under management, making it the country's fifth-largest pension administrator.
Who's selling? US private equity firm AdventDealroom has a profile for this one. Try Dealroom → is the seller, through its Lapef VDealroom has a profile for this one. Try Dealroom → fund. Lapef V will collect about $145 million (€125 million) for its 62.2% stake in Invercap, subject to taxes, exchange rates, and other customary post-closing adjustments.
"Advent has agreed to sell Invercap, a Mexican retirement fund manager belonging to the Lapef V portfolio, to Afore Coppel," Advent said in a statement to its partners (translated from Spanish).
By the numbers: Afore Coppel currently manages 658,003 million pesos (€33,344 million) from 12.1 million clients, according to regulator Consar. Invercap holds 348,939 million pesos (€17,682 million) across 1.9 million accounts.
What could go wrong? Mexican law bars pension managers, known as afores, from holding more than 20% of the private pension market. That cap can only be exceeded with authorisation from the National Commission for the Retirement Savings System (Consar).
The signal: This is the first deal within Mexico's pension sector since MetlifeDealroom has a profile for this one. Try Dealroom → and PrincipalDealroom has a profile for this one. Try Dealroom → merged in 2018. It points to renewed consolidation among afores as scale becomes a competitive edge in retirement fund management.
Read more: forbes.es
Image credit: Generated with Gemini
