TRIBECAPITAL PARTNERS (COLOMBIA): PRIVATE EQUITY IN LATIN AMERICA Case Solution & Answer

This Case is about FINANCIAL MANAGEMENT, HEALTH, PUBLIC RELATIONS

PUBLICATION DATE: April 16, 2009 PRODUCT #: IMD474-HCB-ENG

From that instant on, it took over his life. He was managing acquisitions and handling growth for big corporate things for years; the measure towards doing it independently appeared not only natural but also long overdue. He believed he had an edge too: He understood the Colombian market inside out. In comparison to Europe and the US, Latin America was largely untapped by it, and private equity despite the fact that regional markets were growing rapidly and many successful businesses were coming forth and flourishing. In Colombia, where Luc was residing and working for years, he had ran into many companies with growth potential that was excellent. At a personal level, his entrepreneurial nature was becoming uneasy.

The name he had constructed in the area as enabler and dealmaker presented him with chances he could scarcely resist. Colombia was certainly ripe for private equity but with no proven investment expertise to his associate, Luc and their names Gerardo León were not in a position to bring investors instantly. First, they would need to establish themselves as worth originators and investors, dealmakers, supervisors. With pre-fund cash, they strove to establish that early history, going quickly to enlarge them and getting three businesses within the first year of operation. With these observable bargains under their belts, they carried on to officially raise capital for Tribeca Private Equity Fund I.

The question was, what? How do you balance the chances of this kind of open investment environment with the clear impediments to private equity trades? How do you create a track record immediately to bring institutional investors to a fresh fund? How do you construct a strong deal pipeline, getting approval in a marketplace not accustomed to private equity trades?

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