Mexico Private Equity Fund Financing Structure

Financing Structure

The exact investment structure will be determined on a case by case basis to meet the needs of each company. In general, most commitments are made in equity or equity-related securities, such as common or preferred stock. The Fund normally acquires a minority ownership interest, so that management control remains in the hands of the Company's principal shareholders.

Wherever possible, a mechanism is established at the time of investment through which the Portfolio Company (or its principal owners) can buy back the Fund's ownership over a 3 - 5 year period. Representatives of Maguey Management will participate in strategic decisions made by Portfolio Companies, in most cases through representation on the Board of Directors. The Fund's management team will also work to facilitate the realization of liquidity through appropriate means, such as a public offering.

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