From that moment onwards, it accurately took over his life. He was managing growth and acquisitions for big corporate things for years; the step toward doing it privately seemed not only natural but also long overdue. He believed he had an edge too: He knew the Colombian market inside out. In comparison to Europe and the US, Latin America was largely untapped by this, and private equity despite the fact that regional economies were growing fast and many successful enterprises were coming forth and thriving. In Colombia, where Luc had been residing and working for years, he had encountered many companies with fantastic growth potential. At a personal level, his entrepreneurial nature was becoming uneasy.
The name he had assembled in the area as enabler and dealmaker presented him with chances he could scarcely resist anymore. With no experience in an industry that relied mostly on track records, getting Tribeca - TribeCapital Partners - off the ground would not be simple. Colombia was undoubtedly ripe for private equity but with no proven venture experience to their names, Luc and his associate Gerardo León weren't in a position to attract investors instantly. First, they had have to show themselves as investors, dealmakers, supervisors and worth creators. With pre-fund cash, they endeavored to establish that early history, getting three companies within the first year of operation and going quickly to enlarge them. With these observable deals under their belts, they proceeded to formally raise funds for Tribeca Private Equity Fund I. By early 2008, Tribeca ran a team of 20 employees, had five firms in portfolio and managed commitments of close to US$330 million, making it one of the biggest private equity funds in Latin America. The question was, what next? How do you balance the chances of this kind of open investment environment with the clear barriers to private equity trades? How do you create a track record quickly to bring institutional investors to a new fund? How do you construct a strong deal pipeline, gaining approval in a market not accustomed to private equity transactions?
TRIBECAPITAL PARTNERS (COLOMBIA) PRIVATE EQUITY IN LATIN AMERICA Case Study Solution
PUBLICATION DATE: April 16, 2009 PRODUCT #: IMD474-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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