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Colombia selects Ashmore-led consortium to manage infrastructure fund

The $500m private equity fund will support the development of transport, energy and other infrastructure projects in the Latin American country. Ashmore, local partner Inverlink and technical adviser Macquarie have agreed to invest in the fund.

A consortium led by emerging markets-focused investment firm Ashmore Investment Management has been selected as the manager of the Infrastructure Fund of Colombia.

The fund is being sponsored by the Colombian government in conjunction with two multilateral institutions in the region – the Inter-American Development Bank and the Andean Development Corporation. It will have initial capital of $500 million and will be structured as a private equity fund under Colombian law.

Ashmore and local investment bank Inverlink have been selected as the fund managers, with Macquarie Capital as their technical adviser. All three have agreed to commit capital to the fund either directly or through their managed entities.

The Ashmore-Inverlink consortium beat out proposals from four other parties. Their identities have not been disclosed, but InfrastructureInvestor learned during the selection process that Latin America-focused private equity firm Conduit Capital was among the other proposers.

The objective of the fund will be to support the development of projects and companies in the transport, energy, water, sanitation, communications and logistics sectors of the Colombian economy.

The three sponsoring parties signed a memorandum of understanding in 2008 to find ways to finance infrastructure in Colombia due to its growing needs in that sector.