According to the Private Capital Industry Report in Colombia 2023-2024, prepared by ColCapital (Colombian Private Capital Association) and Deloitte, to date, Nearly US$21.7 billion have been committed to investments in the country, of which nearly US$16 billion have already been invested. Where in addition, there are approximately US$ 4,125 million available for future investments.
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They add that these resources have impacted more than 1,260 assets (companies or projects) in 28 of the 32 departments of the country, covering sectors such as energy, infrastructure, logistics, housing, education, technology, hospitality and tourism.
Based on what was mentioned in the report, the main beneficiary departments have been Bogotá-region with 501 invested assets, which represent 43% of the total; followed by Antioquia with 265 assets, equivalent to 23%, and Atlántico with 74 assets, which represent 8% of the total. “These investments have generated more than 307,000 formal jobs“, they said.
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For her part, Paola García Barreneche, executive director of ColCapital, highlighted that the results confirm that the private equity industry has been a key driver in promoting relevant sectors at the national level and contribute to the economic development of the country.
“Having projects present throughout Colombia, as well as investments that approach US$ 16,000 million, highlights the transformative power and trust that the private capital sector aims to contribute to consolidating a country and a region with greater employability, competitiveness and more prosperous“, he claimed.
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Additionally, it is detailed that pension funds are the main investors of private capital funds, reaching a maximum in recent years, by registering a 49% participation in capital commitments for Colombia, compared to the 38% registered in 2022.
The private equity industry has been a key driver in driving relevant sectors nationally.
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Likewise, corporates, funds of funds and development banks They contributed to the dynamics of the sector with 11%, 9% and 7%, respectively.
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“This study provides a key overview of the contribution of private capital funds to the Colombian economy and the adoption of good practices in social, environmental and governance issues.”, highlights Francisco O’Bonaga, Lead Partner of Financial Advisory at Deloitte.
Regarding entrepreneurial capital funds, It is observed that development banks continue to lead participation with 25% of capital commitments in Colombiafollowed by corporate companies with 16% and family offices and individuals with 11%.
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“This distribution reflects the diversity of actors involved in financing entrepreneurship in the country. In this sense, development banks play a crucial role in providing access to financing for technology-based projects with high social and environmental impact,” they indicated. .
The report revealed that 97% of professional managers integrate ESG (Environmental, Social and Governance) criteria in their investment decisions (8 percentage points more than reported in 2022 – 89%). The above includes the implementation of gender equity, environmental management and social responsibility policies, as well as the adoption of international standards for financial reporting.
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In this regard, it is worth highlighting that the industry had 129 professional managers and a total of 275 private equity funds as of December 2023, distributed mainly in the acquisition/growth (73), real estate (72) and venture capital verticals ( 65).
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