Altra hits hard-cap for Fund II

The firm has more than tripled the size of its $105m debut fund, collecting $356m, which it will use to invest in 10 new companies.

Colombia-based Altra Investments has closed its second flagship fund on about $356 million, north of its $300 million target. The fund exceeded its $350 million hard-cap after including a general partner commitment of close to 2 percent.    

Fund II came to market in March 2012 and held a first close on $164 million last August. The fund will invest in using the same strategy as Altra’s $105 million debut fund, backing mid-market companies primarily in Colombia and Peru in a variety of sectors, and investing between $35 million and $50 million per transaction. The firm’s first fund, now fully deployed, targeted investments of between $15 million and $30 million.

Stanwich Advisors acted as placement agent for Fund II, which attracted commitments from private and public pension funds, sovereign wealth funds, fund of funds, family offices, endowments and foundations. Limited partners in Fund II include investors from North America, South America, Europe, Asia and the Middle East. Roughly 90 percent of LPs in the fund are international investors, with the remaining 10 percent coming from Colombia.

“We were definitely very pleased with the traction and interest [in the fund],” Altra vice president Juan Pablo Gomez told Private Equity International. “We obviously benefit from the tailwind of Colombia, Peru and the region, but we think our strategy makes sense to our investors.”

Altra will aim to make 10 investments from Fund II, completing two to three acquisitions per year. The firm also plans to exit two to three investments every year, keeping its portfolio to no more than 10 companies at any given time. The firm has yet to make any investments from Fund II.

While Brazil remains the most popular region for investors in Latin America, countries including Colombia, Chile, Mexico and Peru have grown increasingly attractive recently. Madrid-based Mercapital, which also has offices in Mexico and São Paulo, attracts a quarter of the its portfolio company revenues from Latin America, but has plans to increase that figure to more than half, Mercapital partner Eusebio Martin told Private Equity International during a recent interview.

Altra has invested a total of $263 million in eight platform companies, including commitments from co-investors. The firm was founded in 2005 and operates out of Bogota, Colombia and Lima, Peru.