Brilla Group Closes the First Colombian Private Equity Fund Dedicated to Hotels & Resorts
Group, a Miami-based private equity firm focused on the luxury
beachfront hotel and resort asset class in South Florida, the Caribbean,
México, Central America, and Colombia, completed the first closing for
its Colombian Beachfront Hospitality Private Equity Fund on February 1st,
2012. This local vehicle, regulated by the Colombian Financial
Superintendent (Superintendencia Financiera de Colombia) and
administered by
Bancolombia, has US$30 million in committed equity from Colombian
institutions, including Bancoldex
(Colombias Foreign Trade Bank) and local pension funds.
This Fund, which will invest in the region known as the Colombian
Caribbean corridor, is the first such fund in the country dedicated
exclusively to investment in luxury hospitality assets. The Fund has
eight years to invest both in operational luxury hotels and in new hotel
construction, and will pursue joint ventures with local and
international investors as well as work with local and international
hotel brands.
The Fund will follow the guidelines of
Limited Partners Association (ILPA), an international organization,
the purpose of which is to offer tools for training, research, best
practices, private equity investment processes, and regulating the
guiding principles between limited and general partners to guarantee
transparency and alignment of interests.
Colombia has become a major economic player in the region: foreign
direct investment (FDI) alone has brought in a total of US$7 billion in
the first half of 2011, an increase of 91%, and tourism has grown at a
rate of 10.6% annually, four times higher than the global growth rate,
said David Brillembourg, Chairman & CEO of
Group. We saw Colombia as a premier investment market due to the
scarce hotel supply to satisfy the growing demand, especially in the
luxury hospitality sector. This imbalance combined with a strong
economy, continuous sustainable growth, and stable government creates an
excellent investment opportunity in our asset class, added Mr.
Brillembourg, who also affirmed that the Fund represents a milestone for
Group as its first investment vehicle backed by institutional
capital.
The Fund will be administered by Fiduciaria Bancolombia S.A., of
Bancolombia (NYSE:CIB; BVC: BCOLOMBIA Y PFBCOLOM), a Latin American
financial group seeking to establish lasting relationships based on
trust and respect. Grupo Bancolombia offers a wide portfolio of products
and services to its nearly seven million individual and institutional
clients, through a regional platform that comprises the largest banking
network in Colombia.
Private equity investors interest in Colombia has grown exponentially
in the last few years, said Fuad Velasco, President of Fiduciaria
Bancolombia. Brilla Group was early to recognize this market
opportunity, and worked diligently to raise institutional capital and
create a sophisticated investment vehicle in line with international
standards, to provide investors with the best possible investment
option. Hence, we consider Brilla Group to be an ideal general partner
to work with and manage the fund.
Group is currently raising a second tranche of the Fund (closing
July 2012), which is open to both individual and institutional investors.
About Brilla Group
Brilla Group is a Miami-based real estate private equity firm focused
exclusively on the luxury beachfront hotel and resort asset class in
South Florida, the Caribbean, México, Central America, and Colombia.
Brilla Group specializes in creating tailored investment solutions for
institutional investors, high-net-worth individuals and family offices,
and currently has US$150 million of assets under management. Brilla
Group has closed investments in México, The Bahamas, French West Indies,
British West Indies, Miami Beach and Bal Harbour (Florida); Brilla Group
has also closed a Colombian-based institutional private equity fund
dedicated to the sector. To learn more, visit www.brillagroup.com.
About Fiduciaria Bancolombia
Fiduciaria Bancolombia S.A. is the largest fiduciary company in the
Colombian Market with approximately US$25 billion in assets under
management, 7 private equity funds (AUM: US$941.5 million), 13 mutual
funds (AUM US$4.05 billion) and more than 900 trusts are under
administration of Fiduciaria Bancolombia. To learn more, visit www.fiduciariabancolombia.com.
