The Colombian Company Yellowstone Closes Its New Real Estate Private Equity Fund

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(cedida) Mercado inmobiliario de Colombia, Yellowstone

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.

Arturo Aldunate Takes Leadership of Business Development in Wealth Management at Credicorp Capital

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(cedida) Arturo Aldunate (izq) y José Manuel Baeza (der), de Credicorp Capital

After over a year leading the Capital Markets unit of Credicorp Capital in Chile, Arturo Aldunate is stepping down to take on a more regional role. The executive was appointed this week as the leader of Business Development in Wealth Management.

This position, the company announced in a statement, has a regional scope and is based in Miami, USA. Aldunate will assume his new duties starting July 1.

The executive joined the Peruvian-based firm in March 2019, according to his LinkedIn profile, as the general manager of Credicorp Capital Asset Management. He was later named Managing Director of Capital Markets.

Previously, he held positions at Altis AGF as general manager, Inversiones Marve as investment manager, Banco Santander as VP of the Equity Trading Desk and Family Offices, and Grupo Security as a risk analyst.

New Leader of Capital Markets

The position vacated by Aldunate at the Chilean branch of Credicorp Capital will be filled by José Manuel Baeza. The executive, who has a 16-year track record, was named the new leader of Capital Markets.

He will assume his new duties on July 1, and the investment firm expects that “his second-line experience within the area in recent years ensures an optimal transition into the role,” as stated in their press release.

Baeza joined the firm in 2021, taking charge of Equities since 2023. During that period, he optimized equity operations and strengthened relationships with institutional clients, significantly increasing the company’s profitability and market positioning.

Before joining the firm, Baeza served as VP and Head of Equity Sales at Santander Corporate & Investment Banking, Head of Institutional Equity Sales & Trading at Banco BICE, and Equity Sales Trader at Celfin Capital (now BTG Pactual Chile).

Aquiles Mosca is the New CEO of BNP Paribas Asset Management in Brazil

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(cedida) Aquiles Mosca, CEO de BNP Paribas Asset Management en Brasil

BNP Paribas Asset Management Announces Leadership Changes in Brazil. Effective July 1, Aquiles Mosca, currently Head of Commercial and Marketing at BNP Paribas Asset Management in Brazil, will assume the role of CEO, as announced in a company statement.

With over 27 years of experience in the fund industry and six years in management, Mosca has been instrumental in the business’s growth and the implementation of the client loyalty strategy, according to the firm.

Luiz Sorge, who led the company for 23 years, is stepping down after a long and dedicated career. In the statement, BNP Paribas highlighted that Sorge consolidated the firm as one of Brazil’s leading asset managers.

Additionally, in line with their continuous development strategy and customer focus, Claudia Concelo, current Business Manager for Latin America, will take on the new role of Deputy General Manager of BNP Paribas Asset Management Brazil.

With more than 25 years of experience in the fund industry, Concelo has worked closely with internal and external stakeholders, significantly contributing to the company’s success, the firm noted.

Florida Council of 100 Presents Strategy to Add 200,000 Jobs

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The Florida Council of 100 announced an economic development strategy to leverage the private sector and propel Florida into a new era of success by creating around 200,000 high-paying jobs by 2030, according to a statement accessed by Funds Society.

The initiative includes several industries in its strategy, such as aerospace, financial services, e-commerce, clean technology, biotechnology, and manufacturing, to promote regional economic specialization and expansion.

The “Beyond Sunshine” Initiative

The strategy, named “Beyond Sunshine,” outlines a path to sustain and accelerate Florida’s economic growth by concentrating resources to foster higher-wage economic clusters in the state’s six main regional economies and three rural areas of opportunity.

Research by the Florida Council of 100 indicates that investment in these clusters and regions could add up to 200,000 new high-wage jobs in Florida by 2030, contributing nearly $100 billion in added GDP to the fourth largest economy in the country.

The Beyond Sunshine strategy outlines three priorities to build on this solid foundation and ensure continued economic growth:

  • Foster Existing Higher-Wage Economic Clusters: Focus investment on regional clusters of opportunity in sectors poised for additional growth, such as aerospace, financial services, e-commerce, clean technology, biotechnology, and manufacturing, to drive regional economic specialization and expansion.
  • Creation of Higher-Wage Jobs: Coordinate with universities, state colleges, career and technical education (CTE) programs, and industry partners to align education and workforce development with higher-paying job opportunities and to catalyze economic activity across all sectors.
  • Elevating Florida’s Economic Success Story: Change perceptions both nationally and internationally to highlight Florida as the best place to start a career, generate wealth, and raise a family.

The Florida Council of 100, a group of over 150 business leaders dedicated to fostering economic growth and improving the quality of life in Florida, will coordinate the implementation of the Beyond Sunshine strategy. They will work in partnership with regional economic development organizations, educational partners, and the state to direct investment into higher-wage sectors, align talent with opportunities, and address challenges for sustained expansion.

Texas Advisory Team Joins NewEdge Advisors from J.P. Morgan

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A Dallas-based advisory team, managing approximately $580 million in client assets, will join NewEdge Advisors, the RIA partnership platform based in New Orleans, owned by NewEdge Capital Group. Fortis Wealth Advisors is composed of advisors Erik Linstrom, Ben Roth, Shawn Stanley, and Kris Cawthon; all of whom left J.P. Morgan Securities to join NewEdge Advisors, bringing extensive experience. The team will use Goldman Sachs Custody Solutions for custodial services.

“We were drawn to NewEdge Advisors’ strong portfolio management solutions, which generate significant time and cost efficiencies,” said Kris Cawthon. “Choosing Goldman Sachs to safeguard our clients’ assets was not a decision we took lightly, and we are excited to offer their solutions and expertise to our clients.”

Extensive and Solid Experience

The Fortis Wealth Advisors team joining NewEdge Advisors boasts extensive and solid experience among all its members. According to SEC records, Erik Linstrom worked at AllianceBernstein for several years before joining JPMorgan in 2010.

Ben Roth began his career in the industry in 1983 at PaineWebber, 41 years ago, and worked at several other firms before joining JPMorgan in 1996. Shawn Stanley worked briefly at Chase in 2000 before several other firms and joined JPMorgan in 2014. In 2004, Kris Cawthon worked at Merrill Lynch, then Morgan Stanley, and later Chase before joining J.P. Morgan Securities in 2013.

Exponential Growth

NewEdge Advisors is an RIA partnership platform formed in 2021 as part of NewEdge Capital Group, and its asset growth has been exponential, currently managing approximately $25 billion in assets according to their figures. Just last week, the firm announced that Stonebridge Financial Partners, an 18-member team based in Michigan with $540 million in client assets, joined from Carson Group.

Earlier this year, NewEdge attracted another Carson team: Nesso Wealth, based in Connecticut, a 20-person team overseeing $262 million. The team consisted of nine advisors and 11 support staff members.

NewEdge Advisors was originally Goss Advisors, co-founded by Alex Goss and Neil Turner in 2020, before the launch of its parent company the following year. NewEdge Capital Group includes NewEdge Wealth, which Goss described as predominantly focused on UHNW families. NewEdge Advisors operates as the company’s more traditional independent model.

New Amnesty and Taxes: The Impact of the Framework Law on the Argentine Tax System

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The main legislative initiative of Javier Milei’s administration, the Framework Law, was approved in Congress after six months of processing and negotiations. On the fiscal side, Argentina has launched a new tax amnesty that exempts assets up to 100,000 dollars from costs. Additionally, the Income Tax is reinstated, and the Personal Assets Tax is reformed.

The specialized tax team at KPG Argentina explains the changes regarding capital regularization.

The regime provides the opportunity to regularize undeclared assets in Argentina and abroad, including stocks, real estate, money in accounts, and crypto assets. The amount to be declared is determined based on a progressive scale and specially designed conditions to encourage adherence to the regime. Taxpayers who are considered fiscal residents as of December 31, 2023, and non-residents who were once fiscal residents in Argentina, can adhere to the tax amnesty. As a condition for non-residents who once were residents to enter the regularization, they must regain the status of fiscal resident in Argentina, which implies being taxed on global income and assets.

Adhering to the regime means that tax authorities cannot claim taxes on the declared assets and/or the operations that generated them.

Assets up to 100,000 dollars—considering the family group up to the first degree of kinship—can be declared at no cost (0% rate). Assets exceeding 100,000 dollars are taxed at progressive rates of 5%, 10%, or 15%, depending on the stage of adherence to the regime.

Under special conditions, declared funds exceeding 100,000 dollars will also have no cost (0% rate) if the money is deposited in an Argentine banking institution and kept there until December 31, 2025.

Taxpayers can declare assets in Argentina and abroad under this regime. It is particularly attractive for those who do not intend to repatriate their assets from abroad since the regime allows assets to remain outside the country without an obligation of repatriation.

Impact on Argentine Taxes with the New Law

The Argentine government’s tax reform entails an increase in taxes, with the controversial reinstatement of the Income Tax (salary or income tax) affecting around 800,000 workers. The tax will impact more people but at a lower rate, especially for higher salaries.

Additionally, the minimum threshold for the Personal Assets Tax (wealth tax) has been increased.

The “Country Tax,” which taxes imports and is part of the legal framework needed to lift exchange controls, remains in place.

Summary of Changes by KPG Experts

Personal Assets Tax: The Special Entry Regime for the Personal Assets Tax has been incorporated, allowing for the advance payment of the tax for the years 2023 to 2027 inclusive, at a rate of 0.45% on the assets existing as of December 31, 2023, multiplied by 5, resulting in a rate of 2.25% for that period.

The benefit, in exchange for this advance tax payment, is fiscal stability until 2038 concerning national patrimonial taxes.

Income Tax: With the approval of the “tax package” in Congress, the Cedular Tax that taxed workers’ income for the current fiscal year was repealed, and the general Fourth Category regime was reinstated with retroactive effect to January 1, 2024.

The new “floor” for the Income Tax will be approximately 1,800,000 pesos (about 1,321 dollars at the MEP dollar rate) per month for single workers and 2,300,000 pesos (1,688 dollars) per month for married workers with two dependents. A progressive tax scale will be applied, starting at 5% of net taxable income, reaching a maximum of 35%.

Real Estate Transfer Tax: The 1.5% tax on the sale of properties purchased before December 31, 2017, is repealed.

Monotax: The parameters and amounts of the regime are updated, effective from January 1, 2024, allowing those excluded for exceeding parameters during 2024 to re-enter.

The Framework Law includes a moratorium on the payment of various taxes: “a regime for regularizing tax, customs, and social security obligations due by March 31, 2024, inclusive, with total waiver of fines and substantial interest reductions. The new moratorium explicitly includes the possibility of regularizing the Solidarity and Extraordinary Contribution (“wealth tax”) created during the COVID-19 pandemic. In addition to the possibility of entering the debt into payment plans with the indicated waivers in installments (the number of installments varies according to the type of taxpayer, from 36 to 84), the new law allows for the waiver of non-final fines and interest when the principal is paid before March 31,” explain the KPMG experts.

HMC Capital Will Bring 20 New ETFs From U.S. Asset Manager First Trust to Brazil

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The ETF market in Brazil is set to soon receive more product offerings: 20 new tickers from U.S. asset manager First Trust will arrive in Brazil through HMC Capital. According to April Reppy Suydam, Head of Distribution for First Trust in Latin America, the assets should be available by the end of the year, distributed across three or four fronts.

The manager is targeting the institutional market but will also cater to individuals. “At this moment, we are prioritizing thematic and multi-strategy solutions,” says April. First Trust is the sixth-largest ETF manager in the U.S., with $158.7 billion distributed in this segment, the most representative part of the total $225 billion in assets managed.

“There are disruptive AI strategies; both related and unrelated to clean energy. We have healthcare, ‘green’ buildings not related to ESG, as well as geographic solutions with assets from Japan and India,” says the Head of Distribution in Latam.

HMC: Focusing on Diversification

According to Felipe Durán Amoedo, ETF and cryptocurrency specialist at HMC Capital, the new assets aim to meet the diversification needs of some institutional players, such as local investment funds. “We see many assets, banks, and family offices seeking diversification solutions,” he says, highlighting that the distributor also sees “growing activity among individual investors” for ETFs.

A significant part of the demand, Amoedo says, comes from the technology sector. “The technology theme is hot,” he states. AI, cloud computing, and cybersecurity are present in recent conversations with HMC’s institutional clients. Fixed income remains active in the house’s portfolio, which should incorporate products from the category with actively managed ETFs.

Investor Education as a Fundamental Step

However, it is not enough just to bring new products to the country, according to April Suydam. The Latam Distribution Head at First Trust states that an important step for the manager is to expand knowledge about the potential benefits of ETFs. “Although ETFs have existed in Brazil for 20 years, they are still just beginning to be used,” she says.

“We have a lot of work to do for certain investors, but I am excited because there is an evolution, which we knew would happen and has to do with diversification from an educational perspective,” she says, referring to individual investors. “The institutions we work with already understand it well. But it’s another thing to convey this to the common Brazilian investor, competing against all the biases towards fixed income,” she states.

“However, I already notice a difference in investments, which are gradually expanding to other products. Personally, I have a lot of patience, and we will be here in Brazil for a long time.”

AllianceBernstein Names Its First Director of Artificial Intelligence

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AllianceBernstein (AB) announced Andrew Chin as the firm’s first Director of Artificial Intelligence.

As a member of AB’s Operating Committee with a 27-year career at the firm, Chin previously served as Head of Investment Sciences and Solutions at AB. Throughout his career, he has held various positions, including Head of Quantitative Research and Data Scientist, and served as the firm’s Chief Risk Officer for over a decade.

“The appointment of Andrew to this new position recognizes our company’s progress with AI and its future potential,” said AB’s Chief Operating Officer, Karl Sprules.

In his previous role, he was Head of Investment Sciences and Solutions and a member of the firm’s Operating Committee. Additionally, he has held several leadership positions in quantitative research, risk management, and portfolio management in the firm’s New York and London offices since joining AB in 1997.

Chin holds a Bachelor’s degree in Mathematics and Computer Science, and an MBA in Finance from Cornell University.

As AI continues to play a fundamental and transformative role in enhancing AB’s operational, business, and investment research procedures, and improving efficiency across all corporate functions, “we look forward to having an industry veteran like Andrew lead our company into the future in this newly created role,” added Sprules.

Chin also appreciated the firm’s commitment to the new role.

“This new role signifies the evolution not only of my professional trajectory at AB but also of the increasingly significant role that data science and artificial intelligence are playing across the financial services industry,” said Chin.

BlackRock Acquires Preqin to Expand in Private Markets Data Segment

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Photo courtesy

BlackRock has reached an agreement to acquire Preqin, an independent provider of private markets data, for $3.2 billion. According to the asset manager, the combination of Preqin’s data and analytics tools with Aladdin’s capabilities will create a “unified platform that will establish a preeminent provider of private markets technology and data.”

Specifically, this operation adds a highly complementary data business to BlackRock’s investment technology, marking a strategic expansion in the rapidly growing private markets data segment. BlackRock highlights that private markets are the fastest-growing asset management segment, with alternative assets expected to reach nearly $40 trillion by the end of the decade. As institutional and wealth investors increase allocations to alternatives, BlackRock has increased its focus on private markets to meet this client demand.

In fact, the asset manager believes there is an even greater need for standardized data, benchmarks, and analytics that enable investors to better incorporate private asset classes into their portfolios and provide fund managers with better data and tools to deliver results to clients. It estimates that private markets data represents a total addressable market of $8 billion and is growing at 12% per year, reaching $18 billion by 2030.

Preqin and Aladdin

Preqin empowers investors to make better decisions by providing data and information that increase transparency and access in the global alternatives market. With a 20-year history, Preqin is a leading independent provider of private markets data solutions with global coverage of 190,000 funds, 60,000 fund managers, and 30,000 private market investors, reaching over 200,000 users, including asset managers, insurers, pensions, wealth managers, banks, and other service providers. In 2024, Preqin is expected to generate approximately $240 million in recurring revenues and has grown at approximately 20% per year over the last three years.

On the other hand, through the Aladdin platform, BlackRock provides technology solutions to over 1,000 clients. The combination of Preqin with eFront, Aladdin’s private markets solution, brings together data, research, and the investment process for fund managers and investors in fundraising, deal sourcing, portfolio management, accounting, and performance. Preqin will also continue to be offered as a standalone solution.

Transaction Terms

According to the asset manager, BlackRock will acquire 100% of Preqin’s business and assets for a total consideration of $3.2 billion in cash. The transaction is expected to close before the end of 2024, as it is still subject to regulatory approvals and other customary closing conditions.

In this transaction, Barclays acted as BlackRock’s lead financial advisor, with Skadden, Arps, Slate, Meagher & Flom acting as legal advisors. Goldman Sachs International acted as sole financial advisor, and Macfarlanes acted as legal advisor to Preqin.

Key Statements

Regarding the transaction, Rob Goldstein, BlackRock’s Chief Operating Officer, stated: “BlackRock’s vision has always been to combine investments, technology, and data to provide solutions that meet our clients’ needs across their entire portfolio. As clients evolve from selecting products to building portfolios, this shift requires technology, data, and analytics that create a ‘common language’ for investing in public and private markets. We see data driving the industry through technology, capital formation, investment, and risk management. Each acquisition has been an opportunity to strengthen our capabilities for clients, and indeed, we have been Preqin clients for many years, and we look forward to welcoming Preqin’s talented team to BlackRock.”

On the other hand, Sudhir Nair, Global Head of Aladdin, added: “Together with Preqin, we can make investing in private markets easier and more accessible, while building a better-connected platform for investors and fund managers. This presents a substantial opportunity for Aladdin to close the transparency gap between public and private markets through data and analytics.”

From Preqin, Mark O’Hare, the firm’s founder, declared: “BlackRock is known for its excellence in both investment management and financial technology, and together we can accelerate our efforts to provide better private markets data and analytics to all our clients at scale. I look forward to joining BlackRock and continuing to play a role in the ongoing growth and success of Preqin and our clients.” Additionally, Preqin’s founder Mark O’Hare will join BlackRock as Vice Chairman after the transaction closes.

Finally, Christoph Knaack, CEO of Preqin, added: “Private markets continue to evolve and so does Preqin. I am incredibly excited about the opportunities this next phase of growth, together with BlackRock, promises to our clients and employees.”

BTG Pactual Announces the Acquisition of M.Y. Safra Bank in the U.S.

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BTG Pactual, one of the largest financial institutions in Brazil, announced the signing of definitive documents for the acquisition of 100% of the share capital of M.Y. Safra Bank, FSB, a financial institution headquartered in New York.

Founded more than a decade ago, M.Y. Safra Bank operates mainly in the private banking and commercial and residential real estate financing markets, in addition to offering general credit products.

At the end of March 2024, the bank had a loan portfolio of $275 million, total assets of $404 million, and net equity of $46 million.

This acquisition is part of BTG Pactual’s global expansion strategy in the Wealth Management and Personal Banking segments in North America, where the bank already has a significant presence.

The completion of the transaction is subject to the verification of certain precedent conditions, including obtaining all necessary regulatory approvals from the Central Bank of Brazil, the Federal Reserve Board (FED), and the Office of the Comptroller of the Currency (OCC).