Enfoca completes $956 mln restructuring led by CPPIB, Goldman Sachs

Canada Pension Plan Investment Board committed $380 million into a restructuring deal that bought out existing limited partners in Enfoca funds and created a new vehicle to house remaining investments.

CPPIB invested alongside Goldman Sachs in the transaction. The new vehicle created as part of the restructuring, Enfoca Discovery 2, has stakes in all seven of the firm’s portfolio companies, representing the healthcare, media, education, housing and consumer-goods sectors.

Existing LPs were offered the chance to sell their stakes in three of Enfoca’s funds or roll with the GP into the new vehicle. Enfoca Discovery 2 closed last month on $956.3 million, according to the firm’s website.

In addition to cashing out LPs, the capital will be used for new investments and to give the GP more time to exit the portfolio. Enfoca declined comment, and CPPIB and Goldman Sachs did not respond to requests.

Park Hill Group was intermediary on the transaction.

Participating LPs include the three largest Peruvian pension funds, Integra, Prima and Profuturo, which all opted for partial liquidity for existing investments and also contributed additional capital to the new fund.

Based in Lima, Enfoca began investing in 2007, focusing on high-growth sectors with exposure to Peru’s emerging middle class.

The firm has raised four funds: Enfoca Descubridor 1, which closed on about $213 million in 2011; Enfoca Discovery 1, which closed on $158 million in 2011; Enfoca Andean Investment, which raised $110 million from U.S. institutional investors; and Enfoca Descubridor 2, which closed on about $47 million in 2013.

Only Enfoca Andean Investment is still listed on the website, suggesting that the assets of the other three have been rolled over into Enfoca Discovery 2.

Action Item: Check out Enfoca’s Form ADV here.

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