Bridging North and Latam Markets With SPACsBy Jerónimo Peralta | Tue, 09/21/2021 - 09:09
Let’s talk about the elephant in the room (or bull in the case of Wall Street). Blank check companies (SPACs) are shells listed for the sole purpose of investing and positioning a company in the stock market. Maquia Capital, a company with headquarters in Mexico, has successfully placed two SPACs in the New York international market through the Nasdaq, which has allowed Mexican investors to have access to this type of sophisticated investment instrument.
Maquia Capital is a financial group that was born as an operator of private equity funds, which invested directly in the equity capital of companies, and as such knows the entire cycle of investment, growth, harvesting, and disinvestment of companies in the Mexican market. Within this cycle of value generation, the market has seen an accelerated growth of companies and investment funds that are born with the purpose of growing at exponential levels and becoming the next success stories or unicorns. However, for this to happen an exit vehicle for investment funds is needed, which is lacking in Mexico and Latin America, and where the exit strategy par excellence would have to be the public markets. For this reason, SPACs will become relevant vehicles for private Latin American companies to enter the markets, since they saw the possibility of participating in larger and more sophisticated markets as being a long way off.
Thanks to this, at Maquia Capital, we are seeing a huge opportunity to bring these markets closer through SPACs; and as a result, we are developing a capital fund with the purpose of creating six to 10 blank check companies on the Nasdaq to facilitate the exit process of investment funds in Mexico or to bring companies with large expansion plans to the stock market.
Additionally, we are taking a step to bring this type of opportunity to the average Mexican investor who previously did not have access to this type of deal. We are looking to make a double listing on Mexico's Institutional Stock Exchange (BIVA) where these investors can buy our investment instruments through a 100 percent Mexican vehicle and, in turn, have access to quality companies with significant growth potential.
These types of solutions and innovations in the Mexican market are needed to take a step toward having a market with more investment options that are validated by international markets such as New York.