Private Capital Raising Alternative in Mexico 

 Challenge 

 I work at a Bank in its Investment Banking division . We advise companies in Mergers and   Acquisition , and Public and Private Capital Raising processes . For public capital raising , we work on   Initial Public Offerings and Follow - on Offerings in the Mexican Stock Exchange . For Private Capital   Raising we introduce private equity funds to our clients and advise them in the process . For   example if we have a client who want to raise equity / find a partner to develop real estate assets   ( to pick an industry ) we would contact real estate private equity funds interested in Mexico such   as Equity International , Jaguar Growth , Blackstone , etc . In recent years , Mexican Pension Funds   have also been active in the private equity sector not only funding private equity funds but also   real estate developers directly . In the last 10 years , a large portion of new real estate   developments was finance , through equity and debt , by Mexican Pension Funds . 

 Unfortunately for real estate developments , Mexican Pension Funds are heavily invested in   Mexico and specifically in real estate , given Mexican Pension Funds were not allow to invest   outside of Mexico until 3 years ago . Since they were allowed to invest abroad , they are more   interested in diversifying its investment and focus on US and European investments . Regarding   Private Equity Funds , it is not the best solution for every developer as funds look to participate at   the business platform / holding level and some developers prefer to have investors / partners at the   asset level .   This dynamic has reduced significantly equity available to real estate developers . 

 Tool Selection 

 Considering the large demand for equity from real estate clients and limited equity from Mexican   Pension Funds and , as discussed , from Private Equity Funds as most of them do not represent a   good alternative , we analyze other potential sources of equity . We identified some clients of our   Wealth Management team as potential investors . Given that , we did not have any previous   experience at the Bank we decided to perform a Learning Launch . We were clear with two clients   that we wanted to launch this potential alternative . Discussed we will work this path together with   the “ regular ” ones . 

 Application 

 We presented the idea to senior management of the Bank and the Wealth Management Division   and make clear it was a Learning Launch which will also help strength the cooperation between   Investment Banking and Wealth Management . Organized a reunion with the top Wealth   Management advisors to introduce them to the idea and receive feedback . Main consideration   was the need to have a listed structure to continue having the client investment in these   investments as assets under management . Prepare a potential listed structure but will put in in   place once one of the investments receives a good traction . Once we solve an important internal 

 hurdle , we were ready to visit potential investors . Prepare a presentation and went to show the   opportunity to a selected list of Wealth management clients . 

 Insight 

 We found that this type of investments are attractive to a small set of Wealth Management   clients . We do not have enough clients to generate the supply of equity needed by our Investment   Banking clients so we need to find additional sources such as other Wealth Management houses   open to participate in theses processes . We continue working in the capital raise and are in the   process of making this adjustment . 

 Approach 

 We should have identified the need for additional Wealth Management houses before but on the   other side we wanted to give a chance to our Wealth Management division to have exclusivity for   some time and been focused on them . Unfortunately , this decision has delay the progress . 


EMAIL: 
ID_NUM: 
NAME_STUDENT: 
PHONE_NUM: 
STREET_ADDRESS: 
URL_PERSONAL: 
USERNAME: 

### Task: You are a PII (Personal Identity Information) Detection. Given a essays written by students, you have to identify ONLY the following:
NAME_STUDENT - The full or partial name of a student that is not necessarily the author of the essay. This excludes instructors, authors, and other person names.
EMAIL - A student’s email address.
USERNAME - A student's username on any platform.
ID_NUM - A number or sequence of characters that could be used to identify a student, such as a student ID or a social security number.
PHONE_NUM - A phone number associated with a student.
URL_PERSONAL - A URL that might be used to identify a student.
STREET_ADDRESS - A full or partial street address that is associated with the student, such as their home address.
### Input: Private Capital Raising Alternative in Mexico 

 Challenge 

 I work at a Bank in its Investment Banking division . We advise companies in Mergers and   Acquisition , and Public and Private Capital Raising processes . For public capital raising , we work on   Initial Public Offerings and Follow - on Offerings in the Mexican Stock Exchange . For Private Capital   Raising we introduce private equity funds to our clients and advise them in the process . For   example if we have a client who want to raise equity / find a partner to develop real estate assets   ( to pick an industry ) we would contact real estate private equity funds interested in Mexico such   as Equity International , Jaguar Growth , Blackstone , etc . In recent years , Mexican Pension Funds   have also been active in the private equity sector not only funding private equity funds but also   real estate developers directly . In the last 10 years , a large portion of new real estate   developments was finance , through equity and debt , by Mexican Pension Funds . 

 Unfortunately for real estate developments , Mexican Pension Funds are heavily invested in   Mexico and specifically in real estate , given Mexican Pension Funds were not allow to invest   outside of Mexico until 3 years ago . Since they were allowed to invest abroad , they are more   interested in diversifying its investment and focus on US and European investments . Regarding   Private Equity Funds , it is not the best solution for every developer as funds look to participate at   the business platform / holding level and some developers prefer to have investors / partners at the   asset level .   This dynamic has reduced significantly equity available to real estate developers . 

 Tool Selection 

 Considering the large demand for equity from real estate clients and limited equity from Mexican   Pension Funds and , as discussed , from Private Equity Funds as most of them do not represent a   good alternative , we analyze other potential sources of equity . We identified some clients of our   Wealth Management team as potential investors . Given that , we did not have any previous   experience at the Bank we decided to perform a Learning Launch . We were clear with two clients   that we wanted to launch this potential alternative . Discussed we will work this path together with   the “ regular ” ones . 

 Application 

 We presented the idea to senior management of the Bank and the Wealth Management Division   and make clear it was a Learning Launch which will also help strength the cooperation between   Investment Banking and Wealth Management . Organized a reunion with the top Wealth   Management advisors to introduce them to the idea and receive feedback . Main consideration   was the need to have a listed structure to continue having the client investment in these   investments as assets under management . Prepare a potential listed structure but will put in in   place once one of the investments receives a good traction . Once we solve an important internal 

 hurdle , we were ready to visit potential investors . Prepare a presentation and went to show the   opportunity to a selected list of Wealth management clients . 

 Insight 

 We found that this type of investments are attractive to a small set of Wealth Management   clients . We do not have enough clients to generate the supply of equity needed by our Investment   Banking clients so we need to find additional sources such as other Wealth Management houses   open to participate in theses processes . We continue working in the capital raise and are in the   process of making this adjustment . 

 Approach 

 We should have identified the need for additional Wealth Management houses before but on the   other side we wanted to give a chance to our Wealth Management division to have exclusivity for   some time and been focused on them . Unfortunately , this decision has delay the progress .
### Output: 