Gramercy Funds Management is ramping up its private credit investments in emerging markets, targeting countries like Mexico, Turkey, and Chile after raising $760m for its third private credit fund, according to a report by Bloomberg.
The report cites Partner and Senior Portfolio Manager Gustavo Ferraro as revealing that the Greenwich, Connecticut-based firm has already deployed roughly two-thirds of the new fund’s capital and is closing additional deals.
Private credit funds are becoming a lifeline for emerging-market companies, offering an alternative to traditional bond markets, a shift partly fuelled by higher US interest rates, which have locked capital into American assets and raised borrowing costs globally, especially following Donald Trump’s presidential victory.
“Messy markets tend to help us because companies that might normally go to public markets turn to us instead,” Ferraro explained in an interview.
Since launching its private credit arm in 2017, Gramercy has managed over $2bn in investments and executed more than 80 loans. Key markets include Mexico, Turkey, and Brazil, with Mexico remaining a strong focus despite concerns about recent judicial reforms that have unsettled some investors.
“We’ve assessed the situation on the ground and believe these reforms are not about dismantling checks and balances,” Ferraro said. “We feel comfortable continuing to invest.”
This year, Gramercy has funded several high-profile projects, including a transaction with the controller of Peruvian zinc miner Volcan Compañía Minera and a loan for a Costa Rican real estate firm. It has also provided credit to suppliers of Mexico’s state-owned oil giant, Pemex.
