LAEFM Colombia Ltda. was established in Bogotá on July 6, 2005 to be the Professional Administrator of the Colombian Investment in Hydrocarbons Fund (CIHF). To date, the firm manages the following funds with total committed resources of USD 376 million:
(i) Colombian Investment in Hydrocarbons Fund – Phase I; committed resources USD 62 million; vintage year 2005 (“CIHF I”);
(ii) Colombian Investment in Forestry Fund; committed resources USD 26 million; vintage year 2007 (“CIFF”);
(iii) Colombian Investment in Hydrocarbons Fund – Phase II; committed resources USD 67 million; vintage year 2008 (“CIHF II”); and
(iv) Colombian Investment in Hydrocarbons Fund – Phase III; committed resources USD 220 million; vintage year 2010 (“CIHF III”);
During this second stage of its development, LAEFM has decided on an investment strategy for its private equity funds that focuses and specializes in specific sectors with high potential for development in Colombia (such as oil & gas and forestry) by investing in projects in association with specialized operators. LAEFM´s strategy differs from the majority of other Professional Fund Administrators, which tend to invest in companies (both in Colombia and abroad), rather than in projects, in a variety of sectors.
As Professional Administrator, the Firm is responsible for identifying, evaluating and negotiating investments in hydrocarbon exploration and production projects or in commercial forestry plantation projects, as the case may be, and monitoring the efficient implementation of such projects, as well as, deciding and negotiating the timing and the method of disinvesting.
LAEFM Colombia is the pioneer in introducing this important type of financing in Colombia and, as such, is an opinion leader for this industry being consulted frequently by other private equity fund managers, investors and the government on various issues related to private equity funds.