Conference for Colombian and Peruvian Pension Funds

(Bogota, June 2, 2006). With the aim of describing successful experiences related to the implementation of risk capital funds in various countries, CAF organized a videoconference for the presidents and managers of Colombian and Peruvian pension funds.

In the conference with the CAF representatives in Bogota and Lima and its Caracas headquarters, the representatives of the funds had the opportunity to exchange opinions with experts from England, the United States and Chile, who explained how their countries had successfully developed risk capital funds, including the pension fund managers (AFPs).

CAF is constantly developing financing mechanisms to promote small and medium-sized enterprises. For the Corporation, risk capital is one of the instruments used successfully to develop SMEs because it promotes sustained growth and generates equity.

The event confirms the Corporation’s interest in supporting the development of SMEs by generating a space to analyze possible scenarios for the future creation of a risk capital fund for Colombia, Peru or the region, which responds satisfactorily to the needs of the enterprises.

During the conference, CAF representative for Colombia Freddy Rojas emphasized the favorable economic situation in that country for developing initiatives to generate strong and more vigorous growth of the economy, which in the area under discussion would open the way for new strategies to strengthen SMEs and their competitiveness. CAF representative for Peru Germán Jaramillo said the pension funds were interested in exploring alliances aimed at implementing new possibilities to support this sector.

Claudia Martínez, CAF Social and Environmental Development vice president, emphasized the importance of the event and invited the participants to continue debating these issues with the objective of developing risk capital in the region with concrete initiatives. She also emphasized CAF’s interest in analyzing and supporting efficient proposals with high impact in favor of the development of SMEs.

With Christina Kappaz, president of Latin American Venture Capital Association, as moderator, the international experiences were presented by Susana García, investment officer of the IBD Multilateral Investment Fund; Steve Cowan, general manager of PCG Internacional; Axel Christensen, former investment manager of AFP Cuprum Chile and now partner of Moneda Asset Management; and Noah Beckwith of Aureos Partners. The speakers also explained the advantages, benefits and risks that this type of fund offers for all the parties involved.