Yellowstone Capital Partners announced the final closing of its new vehicle, the fourth in its Flagship Opportunity series, securing capital commitments of 500 million dollars. This strategy, focused on real estate private equity in Colombia, has become the largest fund of its kind raised in the Andean country.
According to a press release, the final closing of the Yellowstone Flagship Opportunity Fund IV achieved the maximum size stipulated for the strategy. This success, the firm noted, was due to an initial closing that exceeded expectations, reaching commitments of 475 million dollars by September 2023.
All investment commitments for the strategy come from investors in the predecessor fund, including several pension funds (AFPs) and insurance companies. Additionally, the manager contributed its own commitment of 25 million dollars.
These figures make this vehicle the largest private equity real estate development fund focused on Colombia raised in the country, as well as the second-largest real estate private equity vehicle in Latin America for the 2024 vintage.
The Flagship Opportunity Fund IV aims to replicate and capitalize on the strategy of previous iterations in the series, focusing on capital preservation with early liquidity through investments in the development of sustainable communities and strategic long-term income-generating assets.
The primary focus, according to Yellowstone, is on large-scale residential projects for sale—described as “cities within cities”—and mixed-use projects for rent.
The president of Yellowstone, Luis Fernando Ramírez, highlighted the role of institutional investors. “We are very proud to once again have long-term institutional capital, which allows us to continue our strategy of investing in large sustainable communities following the highest institutional, environmental, social, and responsible investment standards,” he said in the press release.
In line with this, the firm’s CIO, Juan Carlos Moreno, emphasized their commitment to “continuing to deepen the important mission of helping more Colombian families fulfill the dream of owning their own homes.”
The closing of this vehicle brought Yellowstone’s assets under management (AUM) in Colombia and the United States to 1.3 billion dollars across five generations of active funds. The company has a team of 25 professionals with more than 15 years of experience working together.
