The Colombian Association of Private Capital Funds (ColCapital) presented to the National Government a series of initiatives to address the current economic situation caused by Covid-19.
“Investment Funds must become an important vehicle for the strategy determined by the Government,” ColCapital said.
In particular, the actions that investment funds can take are:
- Manage the resources of the Emergency Stabilization Fund (Fome), to provide financing to the non-public sector. This would optimize the impact of public resources aimed at strengthening Colombian companies in all economic sectors, offering capital and debt resources.
- Separation of private equity funds investing in Colombia from other funds in the investment regime of institutional investors. This ensures that resources stay in Colombia.
- Creation of an independent limit for local private equity funds within the institutional investor investment regime. It generates competition for the placement of debt of banks, now over-protected.
- Include private equity funds investing in Colombia in the investment scheme of the National Pension Fund of Territorial Entities (Fonpet). To offer the possibility of having profitability to support the business sector to pensioners.
Paula Delgadillo, executive director of ColCapital, said: “We support the measures taken so far by the National Government in the management of Covid-19. However, it is important to add new resources to the country’s economic revival plan. Productive projects and the business sector have been greatly affected.”
“In this sense, it is essential that the Government consider private equity funds, whose objective is direct investment in Colombian companies and projects, as the ideal vehicle to mobilize resources to all sectors of the economy and achieve the strengthening of the country’s business fabric,” he concluded.