TC Latin America Partners raises USD268m for real estate fund
TC Latin America Partners has reached a final close on its second fund, Terranum Capital Latin America Real Estate Fund II (TCLAREF II), raising USD268 million in commitments.
Combined with its predecessor fund, this brings the firm’s total assets under management to over USD500 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 US, 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, says: “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.”
The fund received strong support from both Latin American institutional and private investor communities.
Schneider says: “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.”
The fund has invested approximately USD60 million to date in six investments across its markets.
Hodes Weill Securities acted as the exclusive placement agent to TC Latin America Partners.