Credicorp Capital AM’s Private Debt Fund in Colombia Invests in ExcelCredit

With the aim of expanding the financial options for Colombian companies, Credicorp Capital Asset Management ‘s private debt fund in the country continues to expand its portfolio. The vehicle’s most recent investment was a financing for local fintech company ExcelCredit.

The vehicle is called Fondo de Equidad Privado (FCP) Credicorp Capital Deuda Privada I and the investment was made as a structured senior debt of 30 billion Colombian pesos (around $7.4 million), according to the manager’s announcement in a tombstone on the professional network LinkedIn.

ExcelCredit is a technology firm dedicated to providing loans to pensioners, public employees and public teachers, through the payroll loan modality. This type of credit has the characteristic that the employer makes an automatic discount to the person’s payroll. According to ExcelCredit on its website, they have financed 65,000 clients in the Andean country.

The Private Debt I fund focuses on senior structured debt , the fund manager explains to Funds Society, with the aim of “giving the market an alternative that allows companies to complement the financing offer, putting on the table decisive options for the development of the Colombian business fabric.”

The vehicle has a duration of 10 years and commitments of 1.2 trillion Colombian pesos ($298 million), which they hope will “mobilize” different companies in the Andean country. To date, the manager reports, 410 billion pesos ($102 million) have been placed.

Furthermore, this FCP is a multi-sector strategy. In its year and a half of history, has carried out more than 11 financing operations , irrigating resources with the aim of “boosting the growth and expansion of companies in sectors such as food, construction, services, unregulated finance and industry, among others.”

The prospects of the Credicorp Capital strategy

What does the future hold for Credicorp Capital’s alternative fund? “For this challenging 2024, we hope to continue consolidating ourselves in the local market through structured operations, which can range from 20 billion pesos (almost $5 million) to 85 billion pesos ($21 million), in order to become one of the main allies in strengthening the business fabric in Colombia,” they said.

This investment also came at a time when the Peruvian parent firm views private debt as a strategic asset class.

The fund manager has commitments of more than $630 million, between local funds in Peru and Colombia. “These vehicles allow us to channel resources, in local currencies, from institutional and multilateral investors towards the medium and large business sector, providing a highly positive multiplier effect for local economies.”

The FCP Private Debt I, in particular, has the advantage of having grace periods and payment structures that are more flexible towards the end, unlike other financing alternatives available to companies in the local market. The objective, according to the manager, is to “ relieve the pressure on the debtor company’s cash flow , with loans with longer terms and more flexible schedules, accompanied by a guarantee scheme and/or improvements.”

Credicorp Capital Asset Management offers a variety of FCPs in Colombia, including strategies dedicated to fiduciaries, agribusiness and cocoa, real estate assets and infrastructure debt, among others, in addition to four funds in conjunction with SURA Asset Management.

In addition to fund management, Credicorp Capital is also involved in wealth management, capital markets, corporate and fiduciary banking in the Andean country.

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(Featured image by Juan Saravia via Unsplash)

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First published in Funds Society. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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