Responsible Investment Policy

Nexxus, an alternative asset manager, through its private equity and mezzanine debt funds, provides flexible capital solutions to medium-sized companies with growth potential in Mexico, Spain and Portugal.

In consideration of the foregoing, Nexxus’ responsible investment policy is applicable both for capital investments through private equity funds and the granting of financing through mezzanine debt funds.



1. NEXXUS RESPONSIBLE INVESTMENT BELIEFS

At Nexxus we are convinced that the incorporation of social, environmental and governance (ESG) factors in our investment and financing processes and in the management of our promoted and accredited companies contributes to the creation of value in them, in addition to being an effective means of risk management in our investment activity.

We understand that acting as responsible investors is part of our fiduciary duty in a context  in which our investors  are actively working  to align their financial and sustainability objectives.
We are aware that acting as responsible investors is a gradual process of incorporating best practices and a process of continuous improvement to which we are committed.

In addition, we believe that our activity must actively contribute to the achievement of the Sustainable Development Goals (SDGs) and we shall attempt to align our activities to make it possible. Thus, a priority for us is the contribution we can make to access to decent work and economic development (SDG 8) through job creation and growth of our promoted and accredited companies, the reduction of inequalities (SDG 10) and the contribution to gender equality (SDG 5).


2. PRINCIPLES AND COMMITMENTS

Our code of ethics provides for the following general principles that guide our actions: (i) respect for Human Rights and individual freedoms, (ii) preservation of the natural environment and (iii) collaboration with the development and well-being of the communities and the people with whom we interact.

We are committed in our activity and in that of our promoted and accredited companies to act in accordance with the values and principles recognized in the United Nations Global Compact on human rights, labor rights, the environment and the fight against corruption, and in the main international agreements in this regard signed within the framework of the United Nations, the International Workers’ Organization or the OECD.

When investing, we aspire to comply with the best practices as responsible investors and we have made public our commitment to responsible investment by signing the United Nations Responsible Investment Principles (UN PRI or Principles). As signatories we assume the following principles:

  1. Incorporate ESG issues into investment analysis and decision-making processes and the granting of financing.
  2. Incorporate ESG issues into our ownership policies and practices.
  3. Influence our promoted and accredited companies to report on ESG issues that concern them.
  4. Promote acceptance and implementation of the Principles within the private equity industry.
  5. Work together with other signatories to enhance effectiveness in implementing the Principles.
  6. Report on our activities and progress towards implementing the Principles.


3. MEANS AND DEDICATED EQUIPMENT

At Nexxus we understand that in order to respond effectively to the commitments assumed as a responsible investor, it is necessary to have an adequate corporate governance structure, for this:

  1. We provide training to investment teams on ESG,
  2. We have appointed a responsible ESG team within Nexxus made up of two partners, an officer and other members of the Nexxus team, who direct and coordinate the ESG activity of Nexxus and the promoted and accredited companies,
  3. We have the services of an expert consultant who works closely with those responsible.
  4. ESG and the investment and debt teams in the incorporation of ESG factors in the investment and financing processes.
  5. Within the promoted companies: (i) we make sure to analyze and socialize and implement ESG issues, (ii) the staff of the promoted company receives adequate ESG training and (iii) we appoint an ESG manager who coordinates the implementation of the ESG actions approved in the boards.

Within the accredited companies we request a periodic report of the ESG activities carried out during the relevant fiscal year.

4. INTEGRATING ESG FACTORS IN THE INVESTMENT OR FINANCING PROCESS

At Nexxus, we act as responsible investors in our day to day, integrating ESG factors in each of the phases of our investment and financing processes.

     I. PRE-INVESTMENT/FINANCING

We have decided to exclude from our investment and financing universe a set of activities that are contrary to our principles and entail a high reputational risk.

The investment opportunities that we consider go through a prior comprehensive analysis in which we rule out investing in, and granting financing to, companies that participate in any of the following businesses or activities:

  1. Illegal economic activities: the manufacturing, marketing or other activity that is illegal under the laws or regulations of the jurisdiction of origin;
  2. Tobacco and distilled alcoholic beverages: the manufacturing and trade of tobacco and distilled alcoholic beverages and related products;
  3. Production and trade of arms and ammunition: the financing of the manufacturing and trade of arms and ammunition of any kind, including chemical weapons and the extraction, processing and/or sale of uranium for armaments;
  4. Casinos: financing of casinos and equivalent companies;
  5. Restrictions in the information technology sector: research, development or technical applications related to electronic data software or solutions specifically targeting internet gambling and online casinos;
  6. Life sciences sector: when supporting the financing of research, development or technical applications related to:
       i. Human cloning for research or therapeutic purposes; or
       ii. Genetically modified organisms (GMOs)
  7. Dams that do not comply with the World Commission on Dams (WCD Framework);
  8. Mining or trading rough diamonds not certified by the Kimberley Process;
  9. Artisanal mining (mining using rustic tools normally without regulation);
  10. Manufacture, storage and transportation of Persistent Organic Pollutants (as defined in the Stockholm Convention) and of certain pesticides and hazardous industrial chemicals (as defined in the Rotterdam Convention);
  11. Activities related to nuclear energy that do not comply with the standards outlined by the International Atomic Energy Agency;
  12. Illegal logging and subsequent marketing of timber and related forest products; and
  13. Activities or projects in the energy sector within or adjacent to sites listed by UNESCO as World Heritage Sites.

Our list of exclusions is periodically reviewed to include controversial issues that are identified in ongoing dialogue with our investors.

     II. EVALUATION

The companies that meet our investment/financing criteria are subjected to a prior analysis process by the investment or financing team, as appropriate, which includes: (i) the description of the company’s business, (ii) analysis of the sector, (iii) investment thesis, (iv) structure of the transaction, (v) strengths, opportunities and potential risks (including main ESG risks), (vi) expected returns, and (vii) preliminary business plan. This analysis is reflected in a document called Deal Alert.

     III. FIRST INVESTMENT/CREDIT COMMITTEE, NEGOTIATION OF THE MEMORANDUM OF UNDERSTANDING AND APPROVAL OF THE DUE DILIGENCE BUDGET

In case it is decided to go ahead with the transaction, the responsible team shall begin the negotiation of a Memorandum of Understanding with the company based on a non-binding valuation. In this phase, a report is also prepared for the Investment Committee or the Credit Committee, as the case may be, which includes, among others, the budget approval for the due diligence analysis, including ESG matters.

     IV. DUE DILIGENCE ANALYSIS

In due diligence analysis the focus typically shall be on the following:

  1. Investment/financing thesis and value creation plan (including internationalization);
  2. Management and alignment capabilities;
  3. Business and market analysis;
  4. Financial, tax and structuring;
  5. Legal and insurance;
  6. Information technology (if applicable);
  7. Viability of collateral in the case of financing; and
  8. ESG risks and opportunities.

The ESG due diligence analysis shall be performed by an external provider and shall cover, at least, the following:

  1. Analysis of the adequacy of the investment/financing to the policy of exclusions and restrictions in ESG matters defined in this policy;
  2. High-level analysis of the geographies and sectors in which the company operates in order to identify the main ESG risks and opportunities determined by the location and general characteristics of the activity carried out; and
  3. Specific analysis of the company that allows evaluating its risks and opportunities in ESG matters.

The ESG due diligence analysis shall ensure that the companies in which financing is invested or granted comply, at least, with the following requirements:

  1. Respect the human rights of its workers;
  2. Maintain safe and healthy working conditions for its employees and contractors;
  3. Carry out a responsible environmental management of its operations through the efficient use of natural resources and the mitigation of environmental risks and damages;
  4. Maintain standards of business integrity, avoid corruption in all its forms, and comply with applicable laws and regulations against bribery, fraud, and money laundering.
  5. Establish clearly defined obligations, procedures and controls for the application of best corporate governance practices.

The results of the analysis must be included in a report of conclusions and recommendations that must contain details of the most relevant issues from the ESG point of view for making an investment decision or granting of financing and recommendations to mitigate the identified ESG risks and exploit the potential opportunities found during the investment period or the term of the financing.

In cases where the due diligence analysis identifies material ESG risks, Nexxus shall require that the potential promoted or accredited company commit to applying the appropriate measures to mitigate those risks. Nexxus shall support the promoted or accredited company to do so by developing action plans with adequate objectives, timetables and resources.

     V. APPROVAL OF THE INVESTMENT COMMITTEE OR CREDIT COMMITTEE

Once the transaction team is satisfied with the results of the due diligence analysis, the team shall prepare the Investment Memorandum and present it to the Investment or Credit Committee for final approval.

The Investment Memorandum must include, at least, a specific section dedicated to the main ESG risks and opportunities identified in the Due Diligence.

In that same committee, the 180-day Plan is also presented, which includes some of the recommended actions in the due diligence phase. The 180-day plan shall include at least good corporate governance and business continuity measures (measures to align and retain key talent).

     VI. CREATION OF VALUE

During the investment phase, at least one of the senior members of the investment team shall join the board of directors of the promoted company from where they shall be involved in key operational and strategic decisions. Also, it shall ensure the implementation of the following ESG measures that are common to all promoted companies:

  1. The affiliation of the promoted company to the ESG policy of Nexxus; (ii) the appointment of an ESG manager in the promoted company;
  2. The inclusion of ESG matters on the agenda of at least two meetings of the Board of Directors per year;
  3. The approval of ESG measures within the framework of the 180-Day Plan, Value Creation Plan and Business Plan; and
  4. The definition and calculation of key performance indicators (KPI’s ESG) that allow monitoring the progress made.

Prior to the investment and with the objective of aligning all the parties involved in the relevant transaction, a Value Creation Plan or Business Plan that details the strategic objectives shall be agreed together with the rest of the partners and management team of the promoted company and the actions necessary to achieve these objectives.

Within the 180-Day Plan, the Value Creation Plan and the Business Plan, we evaluate actions that, in addition to contributing to the creation of value, generate a positive social and environmental impact.

Regarding the granting of financing, compliance with Nexxus’s Responsible Investment Policy shall be included as an obligation of the borrower, within the loan agreement and other documents of the transaction. The borrower shall also be required to prepare a periodic report on compliance with said obligations.

     VII. DIVESTMENT

With regard to the exit, our goal is to be able to prove that, at the time of divestment or expiration of the loan term, we have contributed to the creation of a more sustainable company, from a social and environmental point of view.

5. TRANSPARENCY AND COMMUNICATION

Nexxus has signed the principles of responsible investment of the United Nations (UN PRI) to report its activities and progress in the implementation of the principles of responsible investment and thus, every year, it shall prepare the UN PRI Transparency Report.

Nexxus considers that transparency in ESG matters is also a responsibility of promoted and accredited companies and shall encourage them to report on ESG matters that concern them.

6. INTERNAL AND EXTERNAL PROMOTION OF RESPONSIBLE INVESTMENT

At Nexxus we believe that it is essential to lead by example and we try to apply the best ESG practices in our operation as an alternative asset manager, in our internal corporate governance structure, in the relationship with our collaborators, with the private equity industry and society.

Javier Barrera

General Counsel

Javier is the firm’s General Counsel based in Mexico City. Prior to joining Nexxus in 2021, Javier worked for 9 years at Ritch, Mueller y Nicolau, S.C., focused on capital markets, mergers & acquisitions, and lending transactions. Javier received his law degree in 2014 from Universidad Iberoamericana and has an LLM from Columbia University. Javier also worked as a foreign associate at the New York office Proskauer Rose LLP.

Jaime Gómez

Iberia
Analyst

Jaime is an Analyst based in Madrid City office. Prior to joining Nexxus in 2018, Jaime worked at 3i and at PwC in the Deals division, both in Madrid. Jaime holds a bachelor’ degree in Business Administration from ICADE.

Alejandro Diazayas

Iberia
Managing Partner

Alejandro is a Managing Partner at Nexxus Iberia. Alejandro has extensive experience in private equity and has participated in the completion of several of the firm’s investment cycles. He is also a board member and member of the Investment Committee of Nexxus Iberia.  Prior to joining Nexxus in 1997, Alejandro worked for a family-owned company, overseeing plant design, quality control, administrative information systems and product design.  Alejandro holds a bachelor’s degree with academic excellence in Industrial Engineering from the Universidad Iberoamericana.

Santiago Villalobos

Mexico
Director

Santiago focuses on the firm’s growth investments in Mexico and provides support to Iberia. Prior to rejoining Nexxus in 2019, Santiago co-founded Tera Capital, a Mexican based search fund. Previously, he was an Equity Research Analyst at UBS in the Latin American group based in Mexico City. Santiago has an M.B.A. from Chicago Booth School of Business and a B.S. in Chemical Engineer from Universidad Iberoamericana, where he serves as professor.

Javier Orozco

Mexico
Director

Javier focuses on the firm’s Mezzanine investments in Mexico. Prior to joining Nexxus in 2016, Javier was Head of the Corporate Banking Coverage team for Deutsche Bank Mexico. Previously, Javier spent many years in senior banking positions for Citi-Banamex, GE Capital and Bank of America. Javier holds a bachelor’s degree in in Industrial Engineering from Universidad Anahuac del Sur.

Juan Pedro Dávila

Iberia
Director

Juan Pedro focuses on the firm’s growth investments in Spain and Portugal. Prior to joining Nexxus Iberia in 2016, Juan Pedro worked in investment banking division at J.P. Morgan (London) and afterwards at AZ Capital (Madrid). Juan Pedro holds a double bachelor’s degree in Business Administration and Law from the Pontifical University of Comillas (ICADE E-3) and an MBA from IE Business School where he graduated with distinction.

Luis Ascencio

Mexico
Vice-President

Luis is a Vice-President based in the Mexico City office. He focuses on the firm’s growth investments in Mexico and has executed several investment, divestment, and strategic operational processes for several portfolio companies. Prior to joining Nexxus in 2015, Luis worked at SAI Consultores, an Investment Boutique firm where he concentrated on equity and debt transactions. Luis holds a bachelor’s degree in Industrial Engineer from Universidad Iberoamericana.

Mikel Aranzabal

Mexico
Associate

Mikel focuses on the firm’s portfolio companies development in Mexico and serves as member of boards and committees of certain portfolio companies. Prior to joining Nexxus in 2017, Mikel was responsible for the financial planning of Taco Holding, a Nexxus portfolio company. Mikel holds a B.S. in finance from Universidad Iberoamericana

Edgar Velasco

Mexico
Associate

Edgar focuses on the firm’s mezzanine investments in Mexico. Prior to joining Nexxus in 2021, Edgar was part of the Investment Banking team at Banorte, where he participated on equity and debt capital markets transactions. Edgar holds a degree in Economics from Universidad Anahuac.

Javier Rodriguez

Mexico
Associate

Javier focuses on the firm’s mezzanine investments in Mexico. Prior to joining Nexxus in 2018, Javier was part of the Equity Research team at Morgan Stanley. Javier holds a bachelor’s degree in Financial Management from ITAM and has passed the CFA Level II.

Daniel Uruñuela

Mexico
Associate

Daniel is an Associate in the Mexico City office. Prior to joining Nexxus in 2018, Daniel was an Analyst at a Mexican oil company. Previously, he was an Analyst in Fitch Ratings public finance area. Daniel studied Economics in the Instituto Tecnológico Autónomo de México and he passed the CFA Level I in 2017.

Rodrigo González

Mexico
Analyst

Rodrigo is an Analyst in the Mexico City office. Prior to joining Nexxus in 2020, Rodrigo served as an Associate in the investment banking division at Actinver, where he also assisted in managing the bank’s private equity fund. Rodrigo holds a bachelor’s degree in Administration from Instituto Tecnológico Autónomo de México.

Alonso González

Mexico
Analyst

Alonso is an Analyst in the Mexico City office Prior to joining Nexxus in 2019, Alonso served as an investment banking associate, providing advisory services in M&A, structured bond issuances, and private equity capital raisings. Alonso holds a bachelor’s degree in Industrial Engineering from the Universidad Iberoamericana.

Diana Echemendia

Mexico
Investor Relations

Diana is part of the Investor Relations team and previously served as a Mezzanine Analyst based in Mexico City. Before joining Nexxus in 2018, Diana worked at Scotiabank in the asset management area. Diana holds a bachelor’s degree in Finance from Instituto Tecnológico Autónomo de México and has passed the CFA Level II.

José Antonio Roca

Mexico
Intern

José Antonio is an intern at the Mexico City office. He is currently in his final semester of studies towards a bachelor’s degree in Economics and Finance from Tecnológico de Monterrey. José Antonio also completed a Business Analysis and Valuation course at the London School of Economics.

Fernando Zapata

Mexico
Legal

Fernando is part of the legal team based in Mexico City. Prior to joining Nexxus in 2020, Fernando was an associate at EY Law and Creel, García-Cuellar, Aiza y Enríquez, S.C. in M&A and Banking and Finance Law and was responsible of the pro bono area. Fernando holds a law degree from Escuela Libre de Derecho and has an LLM in Banking and Finance Law from Queen Mary University of London.

Christianne Ibáñez

Mexico
Head of Investor Relations

Christianne is the firm’s Head of Investor Relations based in Mexico City. Prior to joining Nexxus in 2020, Christianne was the IRO at Vesta and before that she was the IRO at ICA. Christianne holds a bachelor’s degree in International Business Administration from Universidad Anahuac and a Corporate Finance degree from the Universidad Iberoamericana.

Ana Vidal

General Counsel

Ana is the firm’s General Counsel based in Mexico City. Prior to joining Nexxus in 2016, Ana worked for 4 years at Basham as a paralegal focused on general corporate matters and corporate finance transactions. Ana received her law degree in 2016 from Universidad Anáhuac.

Rafael Ruiz

Iberia
Analyst

Rafael is an Analyst based in Madrid office. Prior to joining Nexxus Iberia in 2020, Rafael worked for 3 years at Alantra’s (former N+1) Active Fund QMC and Corporate Finance areas. Rafael holds a Master’s in Finance from IE Business School and a double degree in Business Administration and Finance from Barton College. Rafael passed the CFA Level III in 2019.

Marimar Torreblanca

Miranda Partners ESG CEO

Marimar is founding partner and CEO of Miranda ESG, a sustainability advisory firm for corporates and investors. She is also partner of Miranda IR (aninvestor Relations advisory firm for corporates) and co-founder of Mujeres en Finanzas Mexico (a non-profit organization which seeks to provide the necessary tools to help women in the Mexican financial industry advance their careers). Marimar has over 16 years experience in financial and strategic analysis. Before Miranda Partners, she held different positions at UBS, specializing in real estate Equity research for over 10 years. She has analyzed companies in different industries and different development stages, including many of them undergoing capital market transactions. Marimar graduated with honors from the Economics program at ITAM and later completed a Masters in Applied Mathematics with a concentration in Operations Research from Columbia University in New York. She holds the Chartered Financial Analyst certificate from the CFA institute

Álvaro de Arrigunaga

Modatelas CEO

Prior to joining Modatelas, he served as the SVP & Chief Merchandising Officer at Walmart Mexico and Central America. With more than two decades of experience in retail, Alvaro has been responsible of the commercial strategy, sales, margins, profits, P&L and store growth of Walmart, Bodega discount stores and Superama supermarkets. Previously he held senior positions as Vice-president of Walmart, Suburbia, Bodega Aurrera and Superama. Alvaro also serves as a member of the Board and Foundation of Walmart. He holds a bachelor’s in business administration from la Universidad de las Américas.

Jorge Raull

Transnetwork CEO

Mr. Raull has ample experience in the financial services markets, having worked for Citigroup and Banamex for more than 13 years in Mexico, the United Kingdom and the USA. Between 1995 and 2000 Mr. Raull was General Manager for Banamex’s Houston Agency. He obtained his MBA from the University of Texas at Austin and is fluent in Spanish, German and English.

He is a founding partner and CEO of Transnetwork LLC;  the most diversified B2B electronic domestic and cross-border processing and payment platform in Latin America, with over 60,000 locations through the largest retailers and Banks  in 12 countries. 

Aby Lijtszain

Traxion Executive President

Aby Lijtszain is a distinguished Mexican entrepreneur with more than two decades of experience in the transportation and logistics industry in Mexico. In 1998, at the age of 20 he executed his first acquisition and founded Transportes LIPU, which today is the largest student and personnel transportation company in the country. Some years later, and with a vision of integrating a highly fragmented sector, he founded TRAXION. Currently, Mr. Lijtszain is co-founder and Executive President. In only eight years, TRAXIÓN has evolved into the largest mobility and logistics company in Mexico and consolidated as the pivot between the logistics and transportation industry, and the financial sector in the country, establishing the first such investment platform in Mexico. Moreover, Mr. Lijtszain has executed and successfully integrated more than 15 M&A transactions and founded and sponsored several companies including a vehicle leasing firm aimed to government institutions, diverse advertising and marketing businesses, and a security company. Mr. Lijtszain holds a bachelor’s degree in Public Accounting from Instituto Tecnologico Autonomo de México (ITAM) and earned a degree in Business Consulting from the same institution.

Jorge Restrepo

PriceTravel Co-CEO

Jorge Restrepo is a Colombian entrepreneur with broad experience in the tourism industry and deep knowledge of digital marketing and travel focused technological innovations. At the age of 32, Jorge founded TiquetesBaratos.com, the leading online travel agency (“OTA”) in Colombia by number of transactions. In 2015, Jorge joined PriceTravel through the acquisition of TiquetesBaratos. Jorge now serves as Co-CEO, where he has implemented a state of the art technological platform and overseen the implementation of key strategies and best practices throughout the company, positioning PriceTravel as one of the leading OTAs in both Mexico and Colombia. Jorge holds a Business Administration Degree from the ICESI Colombia.

Ivo Van Vollenhoven

Twenty Four Seven CEO

+19 years in production industry; prior to 24/7, Freelance Production Manager 1998-00 and Producer of Bee’s Pictures 2000-04.

Leader and visionary. Holds relationship with clients. Aims to grow the business to a multinational production servicer.

Graduate in European Arts Audio-Visual Media Productions by Humberside University.

Martin Ricoy

Pumping Team Chairman

Martin Ricoy has an Extensive career in US multinational in various management positions, such as Crown Cork, Campbell Soup Company or Ralston Purina.

He has served as CEO of Kayser Roth Corporation in Greensboro, CEO of GRUMA Corporation in Dallas, and CEO of Newell Rubbermaid for Europe.

Martin now serves as CEO of Pumping Team and Chairman of Gebomsa.

Martin holds a BBA from The University of Notre Dame (USA)  and an MBA from the Wharton School of Finance.

Arturo Saval

Chairman and
Senior Managing Partner

Arturo is the Chairman and Senior Managing Partner of the firm. For over two decades, Arturo has helped Nexxus become a leading growth investment firm in Mexico and Spain. He has deep experience in private equity and investment banking, having participated in numerous debt and equity transactions, both private and public, as well as in multiple advisory assignments.  Prior to Nexxus, he held senior positions at Grupo Santander México, Grupo GBM, Interacciones and Grupo Serfin. Arturo also served as Chairman of the Board of the Mexican Private Equity Association (AMEXCAP) and on the Board of the Latin American Venture Capital Association (LAVCA).