Colfondos

Investment Overview:

Industry:
Financial Services

At the time of exit, Colfondos was the fourth largest regulated pension fund administrator in Colombia with over $9 billion in assets under management (13% market share) and approximately 800,000 active affiliates (14% market share). The company had approximately 1,300 employees supporting 27 branches in 18 cities.

Colfondos S.A. Pensiones y Cesantias

Country: Colombia
Investment Date: March 2010
Fund: LCP I
Current Status: Realized

Case Study

  • Multiple arbitrage opportunity given a valuation significantly lower than public trading multiples and comparable transactions
  • Acquisition partially financed through a seller’s note, expected to be repaid with dividends.
  • Potential to capitalize on the growth of the voluntary pension market, leveraging on the product’s tax incentives and implementing an aggressive commercial strategy.
  • Incentivize management team with a focused strategy and equity linked compensation.
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