BANCOLDEX plans the first “fund of funds” in Colombia
The Bank of Development for the Business Growth in Colombia (BANCOLDEX) is expecting to expand the range of their investments by creating a fund that will be able to invest in capital funds, that in turn, will also invest in high-impact entrepreneurial projects in Colombia.
Due to the nature of BANCOLDEX as an investment instrument, and taking into account that this instrument has reached its limit of investment as a single institution, the founders have now created a fund of funds that will enable the bank to not only serve as an investor, but as a third-party resource professional manager as well.
This new fund has requested that insurance companies, retirement funds, family offices, universities, and other capital providers to provide capital in excess of $US 35 million dollars in order to augment the number of resources available for investment. The fund will be distributed into three general investment divisions to include early-stage seed funding, business funding, and private investment funding.
The new fund is the first of its kind in Colombia and will enable communities of professional investment managers to hardness international investment resources to facilitate large transactions. Without the fund, institutions typically would not be willing to handle the level of risk.