Ictineo Presentation

Ictineo Infrastructure, LP
Sustainable Infrastructure Projects Fund
Legal Disclosure
This Presentation is submitted on a confidential basis solely to provide an
introduction to Ictineo Infrastructure, LP (the “Fund”). This Presentation
may not be reproduced in whole or in part. The information contained
herein is qualified in all respects by the information included in the Private
Placement Memorandum which will be distributed to all prospective
investors. There can be no assurance that the estimated returns can be
realized or that the actual returns will not be materially lower or higher
than those estimated and included in this Presentation.
This Presentation does not constitute an offer to sell or a solicitation of an
offer to buy any securities, including the securities described herein. An
offering of securities can be made only by the Private Placement
Memorandum.
2
Table of Contents
Summary
The Manager
Experience
Mexico Investment Environment
Mexico Infrastructure Investment Opportunity Structure Terms and Conditions
Investment Process
Investment Pipeline
Conclusions
Appendix A. Ictineo in 1 minute
B. Meaningful Investments
C. Background
D. Biographies 3
Summary
Ictineo Infrastructure, LP (the “Fund”) will invest in sustainable infrastructure projects in
Mexico in renewable energy, biofuels, water, environmental remediation related to
petroleum exploration & production, reduction of greenhouse gases (“Petroleum & Gas –
Clean”), and solid waste management.
Icitineo
Infrastructure,
LP
Energy:
Wind, solar, efficient
cogeneration, hydraulic
and geothermal. Biofuels.
Water:
Water treatment and
sewage plants,
desalination plants, and
aqueducts.
Petroleum & Gas
- Clean:
Support services in
environmental
remediation for exploration & production. Solid Waste
Management:
Waste transformation
plants.
4
The Manager
The Fund will be managed by a management company (the “Manager”) whose members are
part of a team with more than 100 years of aggregate experience in the infrastructure sector
and fund management and operation. Octavio Pastrana
• 
More than 30 years of experience in analysis, development, execution and management of
infrastructure projects in Mexico and the rest of the American Continent, including the US. • 
In the last six years, he has developed in Mexico different infrastructure projects such as
gas pipelines, industrial units for PEMEX refineries, water treatment plants, combined cycle
units for CFE and toll roads. Jose Juan Alvarez • 
He has structured and managed seven funds dedicated to invest in private equity, real estate
and mining.
• 
Over 30 years of experience in investment banking transactions, IPO’s, private
placements, and diverse MA’s transactions.
5
The Manager (cont.)
Robert Monturiol • 
• 
Founder and chairman of Ictineo Capital. The Meaningful Investment Co.
Entrepreneur specialized in growing, innovation, and marketing with more than twenty
capitalized projects in Mexico and Central America and fifteen years of experience in
project valuation. • 
He has managed more than US $150 million from private investors.
.
Alonso Alvarez
•   Seven years of experience in infrastructure project analysis, mainly renewable energy,
private equity and corporate finance.
• 
He has experience as manager and developer of renewable energy projects.
6
Mexico Investment Environment
The investment environment in Mexico is favorable due to: •  the strong economic and political fundamentals, even stronger than those of most of BRIC countries, •  the positive economic growth of the Mexican economy which is ranked as the 11th largest worldwide,
2012 Economic Indicators (%)
Country
Real GDP
Inflation
Unempoyment
Rate
GFCF*
Brazil
Euro Area
India
Mexico
Russia
USA
0.9
-0.6
3.8
3.9
3.4
2.2
5.4
2.5
9.3
4.1
5.1
2.1
5.5
11.4
9.9
5.0
5.5
8.1
-4.0
-4.3
1.5
5.9
6.3
6.1
* Gross Fixed Capital Formation
Source: IM F, Principal Global Indicators
• 
the positive outlook of Mexico's investment grade given by most credit rating agencies,
Mexico Long-Term Sovering Debt Credit Ratings
Fitch
S&P
Moody's
Rate Chg. Date
From
To
May. 2013
Mar. 2013
Dec. 2012
BBB
BBB (Stable)
Baa1 (Stable)
BBB+
BBB (Positive)
Baa1 (Stable)*
* Reaffirmed
• 
the structural reforms taken place in education and communication and the expected fiscal and energy
reforms. 7
Mexico Infrastructure Investment Opportunity There is a positive investment environment and outlook for infrastructure in Mexico due to: • 
• 
the considerable lag in infrastructure in most sectors an regions,
the high relevance the government has put to reduce this lag by announcing an investment plan of US$310 billion for the following six years,
the increasingly high level of participation of private investment in the infrastructure sector,
the expected announcement of the fiscal and energy reforms that will bring new opportunities to
participate in this sector, and;
the importance and priority that the sustainable and environmental care projects have in Mexico.
•  
•  
•  
Infrastructure expenditure as % of GDP
Public vs. Private Investment in Infrastructure
8
Experience
The partners of the Manager have a long experience in infrastructure projects development and
execution
and private equity transaction, management and operation of private equity funds and
type of financial transactions.
other
Infrastructure Experience
Total**
Infrastructure
Sub Sector
No. of
Projects
Energy
Oil and Gas
Water
Highways
Social Infrastructure
Other*
Total
15
24
5
3
2
2
51
Mexico
Amount
Invested
(mill. USD)
1,980
6,470
174
1,225
25
300
10,174
No. of
Projects
Amount
Invested
(mill. USD)
3
2
3
3
2
330
240
54
1,225
25
13
1,874
** Includes US, Colombia, Venezuela, Bolivia and Mexico
* Industrial projects
Relevant Financial Transaction and Fund Experience
Type
Private Equity Transactions
Private Equity and Real Estate Funds
International IPO's
Other Public Debt Transactions
No.
8
4
5
2
Amount
(mill. USD)
592
315
460
665
9
Structure
Limited
Partners
General Partner
Ictineo
Infrastructure,
LP
Manager
Project
Portfolio
No. 1
Advisory Board Limited Partners Conflicts of Interest and other issues No.2
No. n
Investment Commi9ee Partners of the Manager and independent members Investment and divestment approvals 10
Terms and Conditions
Target Fund Size:
US$400 million .
Target Return:
In excess of 15% net to investors per annum .
Capital Contributions:
Capital calls subject to approved investments.
Transaction size and
diversification:
Between US$20 million and a maximum of 20% of the Fund size.
General Partner
Commitment:
5% of total capital commitments.
Term:
10 years, with two optional two years extension periods.
Investment Period:
5 years from Fund’s final close.
Management Fee:
1.5 % per annum on committed capital during investment period; thereafter , 1.5% of
invested capital.
Organizational
Expenses:
An amount not exceeding US$750,000.
Distributions:
1st, to Limited Partners: amount of contributed capital.
2nd, to Limited Partners: 10% per annum preferred return.
3rd, to General Partner: until it has 20% of total distributions.
4th, to Limited Partners and to the General Partner: 80/20 split .
11
Investment Process Investment Opportunity Iden1fica1on •  Principals deal flow •  Referrals Investment Selec1on •  Type of project •  Feasibility •  Risk – Return •  Clear exit strategy Deal Structure •  ValuaIon (Mexico risk) •  Investment structure •  Corporate government and board representaIon Development and Management •  Development / Project construcIon •  Project operaIon •  Corporate government Investment Exit •  Enhanced valuaIon •  Public offering •  Sale to strategic or financial investor 12
Investment Pipeline
Identified projects
Initially we have identified 36 projects in the different targeted infrastructure
sectors with
development potential and an aggregate required equity of approximately US $1,569 million.
The Fund might invest in those that will offer an adequate risk – return balance and
diversification.
Energy -­‐ Wind 20% Energy -­‐ Hydros 42% 3% Energia -­‐ Geothermal Energy -­‐ Solar 11% Energy -­‐ Efficient CogeneraIon 8% 6% 5% 4% Solid Waste Management Biofuels Oil & Gas Clean 1% Water 13
Investment Pipeline (cont.)
Energy:
Sub-Sector
Project
Estimated Equity
Required
(Mill. of US $)
Energy - Eolic.
•  7 privately owned plants, from 25 to 400 MW.
•  3 tenders as IPP for CFE, 100 MW each.
510
150
Energy – Solar.
•  1 privately owned plant, 150 MW.
80 Energy - Efficient
Co- generation.
•  Gas-biodisel plant, 250 MW.
120
Mini-Hydros
•  5 privately owned plants, 20 to 30 MW each.
100
Geothermal
•  1 privately owned plant, 30 MW.
20
Biofuels.
•  2 sugar cane ethanol plants of 400,000 Lts/d in
Veracruz and Jalisco.
• 1 sorghum ethanol plant of 350,000 Lts/d in
Tamaulipas
120
55
14
Investment Pipeline(cont.)
Water:
Sub-Sector
Project
Estimated Equity
Required
(Mill. of US $)
Aqueducts.
•  Actopan - Pachuca, 1 m³/s, 28 Kms.
•  Picachos - Mazatlan 1 m³/s, 26 Kms.
20 20 Desalination Plants.
•  Ensenada, 250 Lts/s.
•  La Paz, 200 Lts/s.
•  Los Cabos, 120 Lts/s.
28
20
20 Sanitation
(wastewater
treatment and
water purification).
•  Cuenca del Atoyac.
•  Puebla, 3,150 Lts/s.
•  Huixquilucan, 550 Lts/s.
•  Aguascalientes, 500 Lts/s.
120 60
40 20 Dams.
•  Paso Ancho, 64 mts.
85 15
Investment Pipeline (cont.)
Petroleum & Gas - Clean:
Sub-Sector
Secondary Gas
Pipelines.
Services to Oil
Exploration and
Production .
Project
•  Supply to end users, industries or gas
Estimated Equity
Required
(Mill. of US $)
20 •   Ttreatment plants and drill cuttings
contaminated land.
20 distribution companies.
Solid Waste Management :
Sub-Sector
Project
Estimated Equity
Required
(Mill. of US $)
Waste processing
plants.
• Six waste processing plants with zero waste.
57
16
Conclusions
Factors that will contribute to value creation for investors:
• 
• 
• 
• 
• 
Team with knowledge and experience in infrastructure projects, from
procurement, assembly and project structuring, to execution and operation. Team with experience in the structuring and management of private equity funds, including investment exits and transaction structuring. Relations with major entities of the federal government that generates
infrastructure projects. Relations with Mexican and foreign companies related with the investment, execution and operation of infrastructure projects. External advisory team, specialized in specific infrastructure sectors. Some
of these advisors might be part of the Fund Investment Committee. t
Appendix
18
Ictineo in 1 minute…
Legacy: In 1859 Narcis Monturiol demonstrates the world that his submarine navigation
was possible, through the creation of the first submarine completely operational to the world;
The Ictineo. after 150 years, a group of entrepreneurs, businessman and bankers, lead by
Robert Monturiol, created Ictineo Capital as a platform to enterprise and develop projects
for private equity in Latin America. Diversity: We have an exceptional combination of talent specialized in growth, innovation
and private banking with more than 30 years of experience in countries of Latin America.
Distinction: We offer our clients unique investments with an exceptional conjunction of
profitability and social impact. We call it Meaningful Investments.
Success: We have incubated and implemented more than 50 successful projects, in different
industries such as financial services, health care, energy, infrastructure, gourmet and home
development, among others. Value: We have done asset and private equity fund management by an amount of around
$500 million USD.
Commitment: We are committed with the implementation of all the investments that we
recommend to our clients, and our profit has an important component linked to the success of
every project. 19
Meaningful Investments
Ictineo has a unique focus in the development of Private Equity projects: We incubate, filtrate,
advice, co-Invest and implement 100% of the projects in our portfolio… “Meaningful
Investments”
Ictineo Ventures
Ictineo Advice
Ictineo Capital
Identifies opportunities in
specific sectors, talents and
entrepreneur passion; with a
multidisciplinary and
specialized team in planning and
project development. Oriented to individuals,
companies, and institutional
investors who require
specialized attention in the
management of their investment
portfolio in the international
markets. Design the optimum
capitalization strategies, in
search for the adequate investor
for every project. Management of Specialized
Funds for collective investors. • 
• 
• 
• 
• 
• 
• 
Entrepreneuring
Innovation Laboratory
Strategic Planning
Incubation-Launching
Talent developing
Management and Control
Growth Plan
• 
• 
Corporate governance
Board Counseling
• 
• 
• 
• 
• 
• 
• 
Investment Objectives
Global strategy investment
Portfolio proposal
Safe keeping proposal
Operation and follow up.
Meaningful Investments
Analysis and valuation results
• 
• 
• 
Club Deals
Private Family Funds
Ictineo Private Equity Funds
20
D. Biographies
Octavio Pastrana
Partner of Ictineo Infrastructure Management. He was president of British Petroleum in Alaska, Venezuela,
Bolivia, Peru, Chile and Mexico from 1995 to 2007 and Senior Director of Projects in Colombia where he was
responsible for investments of more than USD$3,000 M and a production of over 300,000 barrels per day. From
1998 to 2006 he was Vice-president of Distral, a Colombian firm dedicated to the development of projects in the
power generation industry as well as in the production and transportation of oil and gas industry in South America,
where he was sponsor and general director. Through his engineering firm Promelec he was in charge of several projects in hydroelectric and
thermoelectric plants in Colombia from 1978 to 1987. Since 2007 he has been living in Mexico where he was
Director of Business Development for the firm Arendal and President of Isolux Mexico where he participated in
the development of gas pipelines, plants for the Pemex refineries, water treatment plants, combined cycle power
plants for CFE and two highways with an investment of USD$1,200 M. He holds a PhD in Thermodynamics and Fluid Mechanics from the University of Strathclyde, UK; a BsC in
Mechanical Engineering from the Universidad de los Andes, Colombia; he completed a Business Management
Course at Harvard University, a Corporate Strategy Course at Standford University and a World Environment
Course at Cambridge University, UK.
Alonso Alvarez
Partner of Ictineo Infrastructure Management. CEO of Homa Energy Group, a firm dedicated to the
development of renewable energy plants. Director of Investments at Eadness, a hedge fund that focuses on
investing in commodities, currencies, indexes and bonuses. Vice President in Santander Bank in the corporate division destined to invigorate big and medium-size
Businesses Executive of Corporate Banking at Ixe Grupo Financiero. He holds a BA in Industrial Engineering from the Universidad Iberoamericana in Mexico.
21
D. Biographies (cont.)
Jose Juan Alvarez
Partner of Ictineo Infrastructure Management. Previously to founding Advantage Capital Partners in 2003,
investment banking advisory company, he was partner of SAI Consultores, dedicated to M&A transactions,
financial advisory and private equity sponsorship. He was founder of NAFTA Fund (private equity) and he participated in the formation and structuring of Mexico Real Estate Investments, private equity fund dedicated to
invest in real estate.
He was founder and Partner of ZN Mexico Trust and ZN Mexico II, private equity funds. Founder and
partner of Nexxus Capital in 1996, financial advisory company.
Mr. Alvarez was responsible of corporate and commercial banking for Banco del Altantico (1993-95) and of
corporate finance, for Grupo Bursatil Mexicano (1986-93). He also worked for Banco Mexicano Somex in
specialized banking and strategic planning and for Comermex Casa de Bolsa (1974 – 1985) in asset management
and research. Mr. Alvarez graduated in Civil Engineering for the Universidad Nacional Autonoma de Mexico (UNAM), he
earned an MBA at St. Louis University and made graduate studies in Commercial and Investment Banking at
New York University.
Robert Monturiol
Partner of Ictineo Infrastructure Management. CEO’s LatAm Program by Kellogg University (Chicago)
2006, an MBA from CIM Business School (London), a Master in E-business by UPC 1999-2000 (Barcelona),
1995-1996, Business Administration ESIC 1991-1995 (Madrid). Robert’s professional expertise resides in commercial and strategic planning in Banking. Between 1996 and
1998, he held different positions at Banco Santander. From 1998 to 2003 he was Director of Strategic Marketing
and New Channels of Andbanc. He ventured in commercial strategy consulting and marketing as CEO of Daemon Quest México y Latam
from 2003 to 2008. At the present time, Robert is the founding partner of Ictineo Capital where he develops and
implements Private Equity investment opportunities. 22
Contact Information
Mexico City.: Ruben Dario, No. 281, Piso 13-01, Col Bosques de Chapultepec, C.P.
11580, Mexico, D.F.
T: +52 (55) 6264 5533 / 5282.0296 / 5282.0256 / 5282.0256 Villahermosa, Tabasco: Saenz 113, Col. Centro, C.P. 86190
Villahermosa, Tabasco | T: +52 993 268 9696
Robert Monturiol: [email protected]
Octavio Pastrana: [email protected]
Jose Juan Alvarez: [email protected]
Alonso Alvarez: [email protected]
23
24