We evaluate investment funds for high-income people

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We evaluate investment funds for high-income people
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Tuesday, March 10, 2015

Minimum fee for the personal fund would be US$250,000. Sigma will “raise” its fourth operating leasing fund this year.

In 2015, Sigma Sociedad Investment Fund Administrator celebrates a decade of creation and wants to consolidate what has been done so far to continue growing in the coming years. Although its focus will continue to be on institutional investors, it is also evaluating offering products for high-net-worth individuals.

How will this year look for Sigma SAFI investments?
Since 2015 is a pre-election year we are all going to be a little more cautious than we normally are. Sigma’s private equity infrastructure fund (with $250 million committed) is progressing very well. But we see many delays in the execution of large infrastructure projects. The most important investors want to see what happens on the political side and at a global economic level; There is more uncertainty than in other years and they are cautious about entering into long-term projects at this time.

Do you still see investment opportunities in the infrastructure sector?
There are several very interesting projects and we want to actively participate in the development of the country’s infrastructure. We are looking at three or four things and we are going to manage those investments very carefully this year.

What sectors interest you?
Our focus is infrastructure. We are interested, for example, in financing road construction, works, transportation and fishing.

How have you done with your operating leasing investment fund?
Last year was pretty good. We invest about US$100 million a year. Since its creation, we have invested between US$500 million and US$600 million, and divested half of it, between US$250 million and US$300 million.

What are the expectations with this leasing fund?
Operating leasing has become increasingly a strategic financing product for our clients, and has become more interesting for infrastructure as a financing vehicle. We want to raise a new leasing fund this year, it would be the fourth.

What size will this new fund be?
The size is confidential. But the first operating leasing fund manages an asset of US$ 260 million and expires in 2020, it will be nine years old and has a good track record. It has been very stable, solid and with very good returns. Last year and the ancestor returned, net, 7% in dollars.

What other plans is Sigma SAFI considering?
We are still looking at the institutional investor market to grow, but we want to enter with other products, perhaps targeting the market of high-income people so that they can invest in leasing or other types of investment funds. We believe that there is a very interesting space to enter that market. There are people with high net worth who are looking for investment alternatives, given that interest rates are very low.

What type of fund are you considering for these people?
We have three viable alternatives that are in different stages of evaluation, but we must ensure that they do not distract us from serving institutional investors. It can even be a fund for individuals that later scales and becomes institutional.

What would be the minimum fee for people who want to invest in these funds?
We want to look for people with liquidity, who can enter sophisticated products; We don’t want to compete with mutual funds. An investor in these funds should have at least US$250,000 or US$500,000. But I must say that our strong focus is always going to be on institutional investors.

Is there any other sector you would like to enter?
We want to invest in education. There are opportunities to invest in growth capital of small companies in that sector. There is room for investment funds because there is a great need for financing. For example, for universities that want to leave Lima or improve their infrastructure.

Source: Diario Gestión – March 10, 2015