Nexxus Capital Private Equity Fund III LP

completed

_x000C_Nexxus Capital Private Equity Fund III (“Nexxus Capital III” or “the Fund”) is a $200 million private equity fund that will target investments in middle-market Mexican companies. The Fund is designed to achieve superior returns by acquiring control or influential minority ownership positions in undervalued Mexican companies. The portfolio is expected to comprise companies in sectors such as finance and lending; home building; distribution and logistics; telecom and communications, business services, media and retail stores. Nexxus Capital III is a follow-on fund to Zephyr-Nexxus Mexico I (“ZNM I”), a $76.5 million fund of vintage 1999, and Zephyr-Nexxus Mexico II (“ZNM II”), a $119.5 million fund of vintage 2002. IFC invested $15.3 million in ZNM I and $10 million in ZNM II. The prior two funds were established and managed by a joint venture set up by a local investment team (“the Nexxus team”) and Zephyr Management (“Zephyr”). The local team is now spinning off and seeking to raise a third fund on its own to take advantage of opportunities offered by Mexico’s sustained economic expansion and positive demographic trends. The IFC project team proposes to support the local team in its evolution into the first Mexican-run private equity firm.