Equity brokerage firm Acciones & Valores has activated the ‘Emissions Reduction Market Fund’ (Pre) by March 31, a new tranche of the private equity fund for sustainable investments. Interested parties can invest up to $10 million with an average Annual Cash (EA) return of 17%, considering it is an investment vehicle. private investmentUntil 2026, you will be able to withdraw your capital with its returns.
In this regard, Santiago Quintero, head of the company’s assets division, said that Fore’s target in assets under management is $20,000 million, which will be met gradually. Likewise, he said, the said investment vehicle opens the possibility of sustainable alternative funds and portfolio diversification, where the money invested there will not be affected by international events such as the conflict in Ukraine.
What is the purpose of this fund?
This fund started in July last year. However, the process of creating the product took about two years, a period in which we created a product based on non-traditional assets such as CDTs, stocks or fixed income securities and focused more on alternative products. In this world we find real estate funds that invest in private equity.
What are they investing in?
What this fund does is raise capital in what are known as carbon emission reduction certificates. The interesting thing about this entity is that they are trying to reduce greenhouse gases to the atmosphere, a fact that has become valid worldwide. To date, we have an investment of 2,800 million dollars.
What is profitability?
It’s a closed fund with a maturity date in 2026, so those entering now know its return won’t be seen until that year. To date, the return on this investment vehicle has exceeded the 17% Annual Cash EA for our investors, which is a positive benefit even at high inflation rates.
Is it possible to make partial withdrawals?
As this is an unconventional asset, it is not as liquid as a stock on the stock market. The nature of the portfolio is medium term because this target return Finally the Consumer Price Index (CPI) + 12% as an average figure. Therefore, the investor cannot leave.
Can this fund be understood as an active refuge from what is happening in Ukraine?
Such investments are not associated with traditional markets. The current moment is driving economies to become less and less dependent on fossil fuels such as oil. In Europe, the energy transition has been taking place for a number of years, so the current context will certainly warrant significant investment in other types of electricity generators.
We think that such funds, which are alternative and not affected by these variables, are a good alternative to diversify the portfolio. We’re getting clients for $10 million today, a radical change given that investment vehicles have traditionally focused on big buyers like pension funds or insurers. minimum investment It was over $500 million.
Where is the investment made through the Emission Reduction Market Fund (Fore) going?
This fund is focused on projects produced in Colombia. Currently, projects such as Orinoquía, Amazon and Cundinamarca stand out.
Will these vehicles grow in the medium term?
We believe that the resources to start investing in such vehicles that create an environmental impact will become increasingly important. To the extent that the product provides significant returns and environmental benefits, more and larger institutional investors will become more involved in this type of capitalization.
How can this fund be accessed?
Interested parties can link on the Transactions and Securities page. Like any investment with this stockbroker, regulatory advice is provided upfront and all tracking data is provided.
What is the asset under the management objective?
Our goal is to reach $20,000 million managed, a goal that we are slowly advancing. This new chapter closes on March 31.
Source: Lare Publica
