According to a study by the Latin American Venture Capital Association (LAVCA), Colombia ranks fourth in terms of the private equity industry environment in the region. It is the fourth largest fundraiser and accounts for 1% of total investment in Latam.
Bancoldex has been boosting private equity in Colombia since 2009
The Bancoldex public initiative has 3 main objectives:
1- Make new sources of financing available to Colombian companies.
2- Promote the private equity industry in Colombia.
3- Attract new local and foreign investors to participate in this industry.
As a result, Bancoldex has analysed 33 funds. Five investments amounting to 42MM$ have been made in 5 funds investing in the tourism, services, information technology, biotechnology and infrastructure sectors.
Capital resources of 350MM$ have been mobilised, 8 times the investment of Bancoldex, and companies have been capitalised for 250MM$, i.e. 5 times the resources committed by Bancoldex.
To continue its support for the development of the equity fund industry and to provide new sources of financing to entrepreneurs, Bancoldex authorised the extension of the programme to 100MM$ in July 2012.
Colombia vs. Europe: different sectoral approach
"Due to the different level of economic development of the different areas, the PE sector in Colombia has a very strong weight in the infrastructure, real estate and natural resources sectors, accounting for more than 50% of the resources. In Europe, the new funds, at least, in which the public sector participates, are oriented towards SMEs with a technological weight or high-growth sectors", says Diego Gutierrez (CEO of the company). ABRA INVEST) company specialising in alternative financing for SMEs.
