Credicorp focuses new fund on Brazil
December 10, 2018 |
Financial services firm plans to raise $100m for equity investments over the next year
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.