Spanish fund of funds manager Altamar Private Equity has held a first close for its fifth fund of funds on €120 million.
The firm is anticipating holding a second close on €200 million by the end of the year and a final close on €250 million during the first half of 2012. Approximately two thirds of the final close amount is expected to come from limited partners in Spain, with the remaining third coming from investors in Latin America. Of the €120 million raised so far, roughly 80 percent has come from pension funds and insurance companies, with the remaining 20 percent committed by family offices and other entities.
Fund V is approximately 20 percent invested, having made five primary investments and two secondary investments.
In addition to Altamar’s fifth fund of funds, the firm also manages Altamar Secondary Opportunities Fund IV, which closed on €65 million in 2009; and Altamar Buyout Global II and III, which closed on a combined €505 million in 2007. All three funds are fully invested.
Altamar is also opening a new office in Santiago, Chile this month, to be run by senior investment office Alvaro Gonzales. It is the first office outside of the firm's headquarters in Spain.
“We’ve been spending the last three years coming to the region,” Altamar co-founder and partner Jose Molina told Private Equity International. Altamar partner Ines Andrade, who was recently promoted from managing director, will be responsible for the firm’s Latin American activities, based in Spain.
Altamar has plans to raise a Latin American fund of funds next year. “It’s a product that we’ve received a huge amount of interest in,” Molina said. The fund will look for commitments from limited partners in Spain, Latin America and other geographies, Molina added.
Other private equity firms keen on Latin America include UK-listed 3i, which opened a Sao Paulo, Brazil office in April, and The Carlyle Group, which announced plans to establish an office in Peru’s capital Lima before the end of 2011. Carlyle will start investing in Peruvian companies via a joint venture with Credicorp, a local financial services firm.