Yellowstone beats target on record-breaking LatAm fund

• Colombian firm Yellowstone Capital Partners, with $1.3bn AUM, has made the final close on its $500mn Yellowstone Flagstone Opportunity Fund IV (YFOF IV), closing well over its $400mn target.

• The first close in September 2023 drew in $475mn in commitments from institutional investors already in Yellowstone’s predecessor fund and a $25mn GP commitment.

• This is the largest private equity real estate fund with a Colombia-focused strategy ever raised, and the largest in Latin America (LatAm) to close this year.

• YFOF IV will focus on capital preservation with early liquidity through the development of sustainable large-scale for-sale residential communities, and landmark income-producing assets, the same as its predecessor fund.

• Yellowstone is currently raising its fifth real estate debt fund, with target size of $500mn and a focus on North America.

June 28, 2024 (Preqin News) – Yellowstone’s achievement in reaching a first close nine months after launching YFOF IV in January 2023 and a final close after 18 months stands out in a region with drawn-out fundraising processes. According to Preqin data, the average time to final close of LatAm-focused real estate funds between 2020 and 2023 was more than three years (37.7 months).

Preqin currently tracks 22 LatAm-focused private real estate funds targeting a total of $2.1bn. Opportunistic is the largest strategy, accounting for half of the funds by number and 84% by value. The largest opportunistic funds in market are Arch Real Estate Holdings Corporation with a $700mn target and HIS Real Estate VI with a $500mn target.

_{The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.}