Patria Investments creates JV with Bancolombia

The partnership will leverage Patria’s extensive private markets expertise in Latin America with Bancolombia’s well-established distribution capabilities to further expand access to alternative investment products in Colombia.

At its inception, the joint venture will manage a permanent capital real estate investment vehicle with approximately $1 billion of assets under management, which is the second largest fund in Colombia and focused broadly across market sectors.

“We’re very excited to announce this partnership with Bancolombia, which continues our efforts to build comprehensive local asset management practices that can provide investors with tailored alternatives products in their local currencies, as well as access to Patria’s suite of existing regional products” said Alex Saigh, Patria’s CEO.

“Patria is already an established investor in Colombia through our private equity and infrastructure funds, and joining with a leading brand and distribution partner gives us a more complete presence in the country.”

The Colombian long-term savings market totals approximately $145 billion, which has supported the growth and evolution of a $10+ billion alternative asset management industry providing investment solutions for mandatory & voluntary pensions, life insurance companies, and private investors.

Patria’s 35-year expertise in identifying, designing, and managing long-term investment solutions for institutional and private investors, together with Bancolombia’s leading position in the financial industry and developed distribution network, will allow this joint venture to provide innovative solutions to foster the local alternative asset management industry and drive long-term growth for clients, the Cayman Islands-headquartered firm said.

“The creation of a new company in alliance with Patria Investments will allow us to evolve the Colombian alternative asset market, and boost our value proposition for our clients to include world-class investment solutions in Colombia” said Juan Carlos Mora, Bancolombia’s CEO.

While specific financial details of the transaction were not disclosed, the joint venture will be structured with 51% ownership by Patria and 49% by Bancolombia, with approximately $1 billion of fee-earning assets under management at inception.

Patria will contribute capital to be deployed over multiple years to support joint venture operations, as well as to fund GP commitments to promote growth of the existing real estate investment vehicle and new funds within other asset classes. The transaction is expected to close during Q3 2023, and expected to be accretive to Patria’s Fee Related Earnings and Distributable Earnings from day one.

Colombian law firm Posse Herrera Ruiz acted as local counsel to Patria Investments with a team led by partners Jaime Herrera and Susana Gómez, with associates Julián Aguirre, Daniel Ortegón, Laura Aristizábal and Luis Torres.

Patria was also counseled by Latham & Watkins, with a team featuring partner Antonio del Pino and associates Daniel Char and Aubrey Steiger.

Bancolombia was advised by Philippi Prietocarrizosa Ferrero DU & Uria, with a team led by partner Hernando Padilla with associates Daniela Mejía and Natalia Velasco.