Tribeca fund nears first close, targets $400m -Exclusive

The Colombian firm’s third fund is expected to hold a first close in August amid regulatory changes that have freed up more investment for alternative assets.

Bogota, Colombia-based Tribeca Asset Management 's third fund is expected to hold a first close this August, or before the first quarter of 2017, according to Jaime Ramirez, an investment director at Tribeca Asset Management. 

Tribeca Fund III has a target of $400 million, and is the firm's largest fundraising to date. 

Recent regulatory changes in Colombia have enabled LPs to allocate more funding to private equity. On 23 February, the government began to allow pension funds to invest up to 20 percent of their portfolios in alternative assets. Previously, pension funds in Colombia could not invest more than 5 percent of their allocations in such assets. 

“The new raised limit is good for us,” Ramirez said. “The pension funds are big market movers when it comes to local private equity funds in Colombia, accounting for an important share of the market.” Colombia's four major private pension funds are Porvenir, Protección, Colfondos, and Old Mutual.

Tribeca's third buyout and growth equity fund was launched in 2012 and opened to investors in 2014. Tribeca's previous investors wanted to see exits in the firm's previous funds before investing in the latest fund, Ramirez said.

When Tribeca started raising its first fund about nine years ago there was no specific numerical target, because the firm wanted to test the market to see how much the fund could raise, Ramirez said. Tribeca Fund I, which was one the first institutional funds created in Colombia, held a close on $131.5 million in 2007. Tribeca Fund II, which is divided into four special purpose vehicles investing in energy and gas, infrastructure, homecare, and natural resources, raised $226 million between 2009 and 2010.

Tribeca Energy Fund, the $132 million energy and gas vehicle, has a 2.2x multiple of invested capital and a 17 percent net internal rate of return as of June, according to Ramirez. The fund exited thermal energy generation companies Operador del Terminal de Carga Aeropuerto el Dorado and Termocandelaria in 2015.

Tribeca Terminal de Carga El Dorado Fund, the $17 million infrastructure vehicle, exited Bogota airport cargo terminal parking operator Operador del Terminal de Carga Aeropuerto el Dorado (OTCA) in 2015 and another parking operator, City Parking, earlier this year. 

Tribeca Homecare Fund, the $40 million healthcare vehicle, partially exited primary medical care provider Group Emi in 2011. 

Tribeca Natural Resources Fund, the $37 million natural resource vehicle, invested in mining company Bexia resources in 2011. 

Tribeca Asset Management, formerly Tribeca Capital Partners, was founded in 2006 and invests primarily in Colombia. It targets companies in the early to mid-stages of development, according to PEI Research and Analytics. 

BerchWood partners is the placement agent for Tribeca's latest fund.