Gramercy Funds Management aims to increase its private credit portfolio in Peru to $1 billion, planning to deploy approximately $300 million in new deals across sectors like mining, construction, and fishing over the next 18 months.
Gramercy Funds Management, a prominent investment management firm, is targeting a significant milestone in Peru, aiming to reach $1 billion in private credit investments in the country. The firm intends to close approximately $300 million in new deals over the next year and a half, expanding its portfolio in the South American nation.
Gramercy identifies opportunities across diverse sectors within Peru, including mining, construction, and fishing, according to a recent statement. The figures encompass funds deployed through a local joint venture with Andino Capital.
The firm, which recently relocated its headquarters from Greenwich, Connecticut, to West Palm Beach, Florida, has been actively involved in providing direct loans to companies in developing nations, spanning from Mexico to Turkey. This strategy allows Gramercy to fill the lending gap left by banks amidst increased market volatility.
Recent transactions include loans extended to Transition Metals, a subsidiary of the Argentine group that controls Peruvian zinc miner Volcan Cia Minera, and to Sierra Metals, a Canadian mining firm with assets in both Mexico and Peru.
Gustavo Ferraro, who leads Gramercy’s private credit strategy, highlights the “attractive, risk-adjusted returns” generated in Peru due to the firm’s local expertise. However, he did not provide specific details regarding the strategy’s performance.
Gramercy’s private credit arm was established in 2018, two decades after emerging-market veteran Robert Koenigsberger founded the firm. Peru, meanwhile, has been actively seeking to attract private investment, including a $24 billion target to boost its agribusiness sector.