TC Latin America Partners has closed its second real estate fund at $268 million. TCLAREF II will focus on residential, commercial and industrial real estate projects in Peru, Colombia and Mexico. Hodes Weill Securities LLC served as a placement agent for the fund.
TC Latin America Partners, the Latin American real estate fund manager, has successfully reached a final close on its second fund, Terranum Capital Latin America Real Estate Fund II (“TCLAREF II” or the “Fund”) on December 2nd, raising US$268 million in commitments. Combined with its predecessor fund, this brings the firm’s total assets under management to over US$500 million.
TCLAREF II will opportunistically invest in the development of residential, commercial and industrial real estate projects in Peru, Colombia and Mexico. The Fund attracted capital commitments from several institutional investors, including pension funds and insurance companies in Colombia, Peru, the United States, the Middle East and Europe.
TC Latin America Partners believes that the volatility in the region and the global political uncertainty creates ample opportunity for investment in real estate projects in the region. The Fund will pursue an opportunistic investment strategy, providing flexible capital solutions either through debt or equity to projects or developers that are in need of liquidity.
Gregorio Schneider, Managing Partner and Chief Investment Officer at TC Latin America Partners, explains that: “The closing of the Fund validates the strength of our business model and the experience of the investment team throughout different economic cycles. On behalf of the TC Latin America team, we would like to thank our investors for their continued support.”
TC Latin America Partners is one of very few institutional real estate funds focused on Latin America, with a regional focus that allows for diversification. The Fund received strong support from both the Latin American institutional and private investor communities.
With offices in Bogota, Lima, Mexico City, and New York, TC Latin America Partners takes a “boots on the ground” approach to emerging markets investment and has built a network of partnerships with established local developers, banks, land owners and families involved in the real estate sector in the region.
Gregorio Schneider comments, “We are uniquely positioned to take advantage of the current real estate investment opportunity in the region and believe that this is an ideal time to build a portfolio at valuations that we have not seen in a long time.”
“Compared to other emerging market countries, we believe that Peru, Colombia and Mexico are better positioned to withstand potential headwinds. The market fundamentals in these countries are sound and the real estate sector will continue to be very dynamic.”
“With the increased volatility in the market and lack of liquidity, we continue to see the opportunity to structure investments higher in the capital structure and in some cases in US dollars,” says Daniel Grunberg, Managing Partner.
TC Latin America Partners’ regional approach allows it to effectively enter and exit markets. The Fund has invested approximately $60 million to date in six investments across its markets.
Hodes Weill Securities, LLC acted as the exclusive placement agent to TC Latin America Partners in connection with the private placement of interests in the Fund.
About TC Latin America Partners
TC Latin America Partners is an SEC registered alternative asset management firm headquartered in New York with offices in Bogota, Lima and Mexico City. The firm manages real estate funds investing in residential, commercial and industrial projects in Colombia, Peru and Mexico. The investment philosophy is centered on delivering consistent and positive returns focusing on risk management and capital preservation.