New Fund Targets Latin American Investors

LOS ANGELES—Palisades Mexico Partners has launched the Palisades Private Capital Fund I targeting foreign investors from Latin American countries. The fund in currently raising $50 million and plans to raise $100 million in commitments this year. The company is a joint venture between Palisades Capital Realty Advisors and Sergio Arguelles, president and CEO of the Mexican-based firm FINSA.

According to Joaquin de Monet, the founder and managing principal of Palisades Capital Realty Advisors, the fund aims to capitalize on the recent increase in liquidity in Mexico due to the formation of Mexican REIT FIBRA. “FIBRA has increased competition and compressed yields to a level that improves the attractiveness of US investments,” de Monet tells GlobeSt.com. The ongoing conversation about foreign investors is usually focused on Asian investors, and European investors, to a lesser extent. However, Latin American investors are also seeking US real estate opportunities for “growth prospects in a developed economy, safety and a hedge against local currency.”