Creation Investments pours $20m into AVLA insurance group

Posté le 14 juil. 2021

US-based private equity fund Creation Investments has entered into an agreement with AVLA, an insurance company with operations in Chile, Mexico and Peru, to inject approximately $20 million into the company, a capital increase that AVLA will use to bolster its financial standing.

Via the transaction, Creation Investments will subscribe approximately 26% of the capital issued by AVLA, which offers comprehensive insurance solutions in Latin America through guarantee insurance, credit insurance and financing solutions.

Creation Investments is a Chicago-based investment manager with an emphasis on creating social impact, specializing in private equity investments in financial institutions in emerging markets, and with significant investments in 15 countries that include Mexico, Peru and India.

"We are very pleased to incorporate Creation into our company and add new support to our business model and successful international expansion plan,” AVLA’s CEO  Ignacio Alamos said.

“We hope, with these resources, to expand our commitment to our more than 50 thousand SME clients and continue to generate a positive social impact in the region," he added.

The entry of Creation Investments consolidates the participation of institutional investors in AVLA's ownership, as it joins the entry of DEG, a subsidiary of German development bank KfW, and Altra, private equity based in Colombia, which occurred in 2019.

"We see in AVLA a talented team and an innovative and proven business model, which has allowed it to have solid growth within the region over the last few years, despite adverse market conditions,” Bryan Wagner, a partner at Creation Investments, said.

“We are confident in AVLA's ability to grow and continue to make a positive social impact," he added.

Chilean law firm Larrain & Asociados acted as advisor to Creation Investments on the due diligence and negotiation of the investment, while AVLA was advised by law firm Barros Errázuriz, and Tyndall acted as an investment bank.

Larrain & Asociados’ team featured Juan de Dios Ferrada, Patricio Montes, Víctor Manuel Avilés, Gonzalo Guerra, Michelle Inzunza and Teresita Vinagre, while the team that carried out the due diligence featured Juan de Dios Ferrada, Teresita Vinagre, Gonzalo Guerra, Jorge Parro, Michelle Inzunza, Ignacio Paci, María Alejandra Bulnes, Alejandra Prieto and Macarena González.

Barros Errázuriz’s team advising AVLA comprised Bernardo Simian, Andrés Varela and José Miguel Poblete.