OPIC Board Approves $100 Million Investment in Paladin Realty's 4th Latin American Fund
May 8, 2013
(OPIC)
First-time home buyers to benefit with new affordable housing
WASHINGTON, D.C. – The Board of Directors of the Overseas Private Investment
Corporation (OPIC) recently approved a new financing commitment of up to $100
million to Paladin Realty Latin America Investors IV LP, a new investment fund
sponsored by Paladin Realty Partners, LLC, a leading institutional real estate
fund manager focused on Latin America. The fund, which held its initial closing
earlier this year at $75 million and has a target capitalization of $400 million
to 600 million, aims to build thousands of affordable housing units throughout
Latin America.
“This new fund will continue Paladin Realty’s 15-year strategy of supporting
affordable homeownership in Latin America and the growth of its housing
industry,” said OPIC President and CEO Elizabeth L. Littlefield. “We are
thrilled to partner with this innovative U.S. investment firm to bring these
development-stage projects to realization.”
A primary focus of the Latam IV fund’s investment strategy will be to finance
the development of new housing for the region’s growing workforce. The fund
aims to build approximately 12,000 affordable housing units throughout Latin
America. By creating an asset base for first-time homebuyers, Paladin’s Latam
IV fund will support the growth of local housing markets – and with them
construction and related industries – where there is pent-up demand and growing
deficit of supply. More than half of the families in 41 of Latin America’s
biggest cities cannot afford to buy a proper formal dwelling using their own
means, according to a 2012 study by the Inter-American Development Bank.
OPIC, which is one of the largest sponsors of private equity funds in emerging
markets, has previously supported two Paladin Realty investment funds focused on
Latin America. Pension Consulting Alliance performed due diligence on the fund
and Paladin Realty on OPIC’s behalf.
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