Colony Capital has agreed to acquire Abraaj Group‘s private equity platform in Latin America. No financial terms were disclosed. The deal is expected to close during the first quarter of this year. The company will rebrand as Colony Latam Partners.
January 23, 2019
Mexico City / Los Angeles / New York
Abraaj Holdings, Abraaj Investment Management Limited (together, “the Group”) and Colony Capital, Inc. (NYSE: CLNY) (“Colony Capital”), through the Group’s Joint Provisional Liquidators, PricewaterhouseCoopers and Deloitte, have signed a definitive agreement for Colony Capital and the existing management team to acquire the Group’s private equity platform in Latin America (the “Company”). The transaction is expected to close during the first quarter, subject to certain approvals. The Company will rebrand as Colony Latam Partners.
The Company currently manages over US$500 mm and has deployed over US$700 mm across 22 investments since its establishment in Latin America in 2006. The Company’s core strategy is focused on growth equity investments in middle-market companies throughout the Pacific Alliance, a trade bloc consisting of Mexico, Colombia, Peru and Chile. Together, these four countries have a combined population of 210 million people and approximately 35% of the region’s GDP.
Colony Capital is partnering with the Company’s senior management team consisting of Partners Miguel Angel Olea Sisniega, Hector Martinez Fry, Gerardo Mendoza Llanes and Eduardo Cortina Murrieta, who will continue to lead and grow the Company’s operations in Latin America.
“The team has established itself as a premier private equity investor across Latin America and has positioned the Company for rapid expansion. With a long and deep history of investing across emerging markets, Colony Capital looks forward to supporting Colony Latam Partners’ proven investment philosophy, process and strategy,” said Justin Chang, Managing Director and Global Head of Private Equity for Colony Capital.
“We are confident that our partnership with Colony Capital is the best decision for the Company, our investors and for our professional growth,” said Mr. Olea Sisniega. “We believe that an alliance with an organization of such first-class talent, high-quality products, and extensive distribution networks will benefit all of our stakeholders. As a member of the Colony Capital family, we will build upon our strong foundations and continue to pursue robust investment returns for our Limited Partners, while making sure that we deliver on our promise of providing intelligent growth capital to our portfolio companies.”
About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $44 billion. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded real estate investment trusts and registered investment companies. The Company has significant holdings in: (a) the healthcare, industrial and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC) and NorthStar Realty Europe Corp. (NYSE: NRE), which are both externally managed by subsidiaries of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in New York, Paris and London, and has over 400 employees across 17 locations in ten countries.