LatinoWire

November 18, 2024 09:00 AM Eastern Time

Gramercy Funds Management Announces Close of Gramercy Capital Solutions Fund III

GREENWICH, Conn.--(BUSINESS WIRE)--Gramercy Funds Management LLC (“Gramercy”) a $6 billion global emerging markets investment manager, today announced the final close of its Gramercy Capital Solutions Fund III (“GCSF III” or the “Fund”), with $685 million in limited partner commitments to the Fund and an additional $75 million in co-investments to date. This combined raise of $760 million in the strategy represents a 28% increase from the June 2022 closing of the firm’s second fund (GCSF II) which closed with $592 million. The inaugural fund (GCSF I) closed in 2017 with commitments of $312 million. Virtually all the limited partners from GCSF I and GCSF II committed capital to GCSF III.

“…we have an ability to access a multitude of borrowers and negotiate attractive terms for the Fund because they see our capital as transformational for their businesses and growth aspirations.”

The Capital Solutions strategy is anchored by a dedicated 12-member team that has been working together for more than seven years. The team, led by Gustavo Ferraro as Senior Portfolio Manager, averages more than 20 years of experience in the field. The senior team is composed of Javier Ledesma-Arocena, Portfolio Manager, as well as Gian Marco Maltoni, Tomas Serantes, Lisandro Muller and Felipe Alonso. Headquartered in Greenwich, CT, the team is located throughout our investment region with offices in Argentina, Mexico and Miami, and is supported by our lending platforms located in Brazil, Colombia, Peru, Mexico and Turkey.

The Fund invests in USD loans, mostly primary, across Latin America (~75%) and CEEMEA (~25%), with a highly diversified approach across industries, company types and sizes. Loans aim to deliver attractive mid-teens returns with robust downside protection. They are typically structured as highly covenanted, asset-backed, self-liquidating structures, with strong LTV ratios and cash flow control. The Capital Solutions Investment Committee underwriting focuses on downside protection to our investment thesis and collateral value. Asymmetric risk-return is sought from managed cash-flow and asset-based collateral packages, structured for enforcement utilizing the best available and proven structures within EM jurisdictions.

Limited partners in the Fund consist of both existing and new investors located in Europe, North America and South America, including insurance companies, public pension plans, investment managers and family offices.

Gustavo Ferraro said, “We are excited to announce the final close of GCSF III and thank our investors for their commitment to this strategy. We believe our proven multi-channel approach to sourcing including our unique lending platforms providing strong visibility and rapid, dependable capital deployment remains very attractive to investors.” Regarding the investment environment he further commented, “…we have an ability to access a multitude of borrowers and negotiate attractive terms for the Fund because they see our capital as transformational for their businesses and growth aspirations.”

“Gramercy’s differentiated, better approach to emerging markets continues to prove effective through market cycles, and we look forward to deploying this new capital,” said Robert Koenigsberger, Managing Partner and Chief Investment Officer of Gramercy. He added, “Gramercy is a longstanding leader in emerging markets with over 25 years of expertise and an extensive global footprint. We leverage the depth of experience and knowledge represented in our investment team to focus on the best opportunities in private credit and direct lending corporate markets.”

To date, Gramercy has deployed approximately $5 billion in capital in this strategy across over 100 investments. The firm is optimistic regarding the opportunity to deliver for their investors through 2025 and beyond.

About Gramercy Funds Management

Gramercy is a global emerging markets investment manager based in Greenwich, Connecticut with offices in London, Buenos Aires, Miami, West Palm Beach and Mexico City, and dedicated lending platforms in Mexico, Turkey, Peru, Pan-Africa, Brazil, and Colombia. The $6-plus billion firm, founded in 1998, seeks to provide investors with a better approach to emerging markets, delivering attractive risk-adjusted returns supported by a transparent and robust institutional platform. Gramercy offers alternative and long-only strategies across emerging markets asset classes, including multi-asset, private credit, public credit, and special situations. Gramercy’s mission is to positively impact the well-being of our clients, portfolio investments and team members. Gramercy is a Registered Investment Adviser with the US Securities and Exchange Commission (SEC), a Signatory of the Principles for Responsible Investment (PRI), a Signatory to the Net Zero Asset Managers initiative (NZAMI) and a Supporter of the Task Force on Climate-Related Financial Disclosures (TCFD). Gramercy Ltd, an affiliate, is registered with the UK Financial Conduct Authority (FCA). For more information, visit www.gramercy.com.