Credicorp focuses new fund on Brazil

Credicorp focuses new fund on Brazil

Funds Equity Capital Markets Chile Brazil Colombia Peru

Credicorp Capital has earmarked up to 60% of its new $100m equity fund for investments in Brazil, said Galantino Gallo, the deputy CIO in Chile for the regional financial services firm.

"We are going to be 50% to 60% focused on Brazil and the rest in Latin America, whereas our previous fund [Pacific Alliance] was 10% in Brazil and the rest in the Andes and Mexico," Gallo told LatinFinance.

Credicorp plans to bring in $20m to $40m from institutional investors and family offices in the next six months and raise another $60m to $80m within a year, Gallo said.

"We already have $1m in seed capital and we are opening to feeder funds in Peru and Chile in the next few weeks," he said.

The new equity fund will target dollar-denominated returns of 15% and bankroll small and midsize enterprises (SMEs) in the e-commerce, technology and retail sectors, Gallo said.

Once invested, the new fund will increase Credicorp's holding to $600m, including $21m from the Pacific Alliance fund.