LarrainVial and Chilean real estate firm Grupo Patio have joined forces to buy a 20% stake in Mexican investment boutique DD3 Capital Partners, marking their first move into Latin America’s second biggest market.
The acquisition will allow the Chilean firms to establish a footprint in Mexico, using the local boutique’s infrastructure to develop a platform to offer investment funds, advisory services and distribute third-party products to local investors, the groups said in a statement.
DD3 was founded by ex-Goldman Sachs Latin America directors Martin Werner and Jorge Combe in 2016. It currently has 14 employees and offers three real estate-focused funds.
Under the deal, LarrainVial owns 63% of the stake in DD3 and Grupo Patio 37% with the option of increasing their joint stake to 50% of the boutique between 2021 and 2023.
José Miguel Barros and Manuel Bulnes, co-heads of LarrainVial Capital, will manage the relationship and development plans with DD3.
Commenting on the deal, Barros said: ‘The Mexican capital market has tremendous potential and is sending signals it is opening up to international investment, something we want to take advantage of through industry leaders like Martin and Jorge, and through top partners like Grupo Patio.’
He added that the acquisition is part of Larrainvial’s expansion plan to grow internationally.
The Chilean firm recently saw strong inflows into its Ucits funds in 2017, quadrupling their assets under management. LarrainVial runs $27.8 billion and currently has a presence in Chile, Colombia, Peru, the US and will soon be making a move into Argentina.
Grupo Patio was founded in 2004 and has over 70 real estate assets through a number of Reit vehicles.