Carlos Morales, CEO of the Spanish company Adepa, confirmed that the maturity of the local market has created a demand for these services. The aim is to expand from Chile across the region.
The sophistication of the Chilean fund industry is attracting foreign interest. Originating in Spain and headquartered in Luxembourg, Adepa has recently opened offices in Chile to provide back office and administration services to investment funds.
Adepa CEO, Carlos Morales, explained that the maturity of this sector was a key factor in the decision to set up in Chile. “We had been studying the Chilean market for a long time before we decided to take the plunge. It has a mature investment funds market and is more developed than other countries. We believe that Chile is a good place to launch our business strategy in Latin America,” he said.
He added that “the development of Chilean fund managers has progressed further than elsewhere, and they are very interested in creating international, traditional and alternative products.”
The firm recently acquired a Chilean company called Planes to accelerate its Chilean market penetration. Although current plans are to grow organically, Mr. Morales did not rule out other acquisitions.
“We are not ruling out acquisitions as we have reached an important stage in the development of our international strategy. We see Chile as a platform to strengthen our business,” he said.
Long-term investment in Chile
The current political situation in Chile affects the investor decision-making process, in particular the presidential elections and the new Constitution. However, Mr. Morales believes that events in Chile are being replicated in other countries in the region.
“We have a long-term strategy. We see that what is happening here is also happening elsewhere. We believe that change is coming, but the mutual fund industry has proven to be very strong in all markets,” he said.
“We believe that Chile is an opportunity regardless of the political context,” he added.
He commented on the potential changes to the pension regime. “This may be an opportunity for private investment funds in terms of savings growth and private asset management. We have found that many entities are expanding their business internationally. They are specializing in alternative products such as private debt and venture capital. The market is also demanding this kind of exposure.”
Adepa currently has a 15-person team and plans to grow within the region.
“We believe that Mexico could be an interesting market. Peru and Colombia are also on the radar. We want to enter markets where our strategy fits, where the investment fund industry is well developed within a strong regulatory framework, and where there is interest in creating international products,” he said.
The following article contains further information about global services and investment funds in Chile.
Source: Diario Financiero