Frontal Trust

KYCO: Know Your Company

Reveal Profile

2 January 2026

1) Overview of the Company

Frontal Trust S.A. is a Chilean alternative asset management firm founded in 2015 by Andrés Echeverría, specializing in institutional and high-net-worth investor services across multiple geographic markets. The company operates as an investment fund manager with presence in Chile, Peru, and the United States, managing both public and private investment funds focused on Real Estate, Private Equity, Private Debt, Infrastructure, and Agribusiness sectors.

Headquartered at Av. Presidente Riesco 5561, Office 1601, Las Condes, Santiago, Chile, Frontal Trust has expanded its operations internationally with investment offices in Lima, Peru (established in August 2021) and previously operated in Miami, Florida until December 2023 when the Miami team separated to operate under the brand 12ten Capital. The firm manages dozens of investment funds across its five core business areas, serving institutional investors and qualified private clients through a co-investment approach where the company directly participates in the opportunities it offers to clients.

The company operates under Chilean Law No. 20.712 on Third-Party Fund and Individual Portfolio Management and is supervised by Chile’s Financial Market Commission (CMF). As of 2024, Frontal Trust has evolved from its original focus as a real estate fund manager to become a diversified alternative asset management platform with over $270 million in assets under management as of early 2017.

Recent organizational changes include the December 2023 appointment of Claudio Mehech Labán as CEO of Frontal Trust Administradora General de Fondos S.A., who brings 20 years of financial sector experience with an industrial engineering degree from the University of Chile and MBA from The Wharton School. The firm has undergone significant board composition changes, with new directors Alejandro Micco, José Antonio Martínez, and Claudio Correa joining the board in April and May 2024.

The company operates through strategic partnerships with specialist managers in each industry sector, emphasizing transparency, co-investment, and long-term value creation for investors. Frontal Trust has been a member of the Global Impact Investing Network since 2022, reflecting its commitment to sustainable investment practices.

2) History

Frontal Trust S.A. was founded in March 2015 by Andrés Echeverría, who initially focused the company exclusively on real estate fund management with three investment funds managed in partnership with Inmobiliaria Fundamenta. Echeverría brought extensive financial industry experience to the venture, having served over nine years as CEO of Bicecorp (the parent company of Banco Bice and Bice Vida) and previously as Investment Banking Vice President at Deutsche Bank (formerly Bankers Trust), where he led equity and debt market transactions and M&A operations in Chile and the United States.

The company’s first year saw rapid expansion through strategic partnerships, beginning with an August 2015 alliance with Surmonte, a real estate agency controlled by holding company Pie de Monte for residential project development throughout Chile. By May 2016, Frontal Trust diversified into industrial real estate through a partnership with Campos de Chile, marking its initial move beyond residential development.

A pivotal transformation occurred in June 2016 when Frontal Trust expanded into private equity by acquiring 75.5% of Autofin, an automotive financing firm, with the remaining 24.5% owned by Cavem Chile. This acquisition represented the company’s first major move into alternative asset classes beyond real estate. The company achieved a significant milestone in November 2016 with the launch of its first public fund, the Retorno Preferente Fundamenta Plaza Egaña Fund, raising over $50 million in equity.

By January 2017, Frontal Trust had completed its second year with $270 million in assets under management across 11 active investment funds, with 10 funds focused on real estate operations through partnerships with Fundamenta, Surmonte, and Campos de Chile. The company continued its diversification strategy in March 2017 by expanding into the Private Debt segment, offering financing mechanisms to small and medium-sized companies with high growth potential.

International expansion began in October 2017 through a partnership with EverWest, a North American real estate firm, launching two real estate funds in the United States focused on acquiring medium-sized office buildings using value-add strategies. EverWest contributed 10% equity and served as fund manager for these vehicles.

The period from 2018-2019 marked significant infrastructure and operational expansion. In February 2019, Frontal Trust achieved a historic milestone by acquiring a 33% stake in Vespucio Norte and Túnel San Cristóbal concessionaire companies from Canadian fund Brookfield through its Alpha fund, becoming the first Chilean investment fund to own a percentage of an urban highway in Chile. The company strengthened its private equity portfolio in July 2018 with an 11 billion Chilean peso capital increase for Autofin, bringing Frontal Trust’s ownership to 64%, IRB to 30%, and Citroen importers to 6%.

Frontal Trust established its first international investment office in May 2020 with Frontal Trust U.S. located on Brickell Avenue in Miami under the direction of Luis Felipe San Martín as Managing Partner. The company launched several innovative fund products during 2020-2021, including the “Frontal Trust Rendimiento con Liquidez” public fund in September 2020, which invested in the private investment fund managed by related company Cordada Capital S.A., offering daily accrual through preferred series with 30- and 60-day redemption policies.

Geographic expansion continued in August 2021 with the establishment of Frontal Trust Peru in Lima under Raúl Benavides as Partner and Portfolio Manager. The company further diversified into Europe in December 2021, launching “Frontal Trust Desarrollo Inmobiliario Industrial España” for build-to-suit industrial asset development with long-term rental contracts for low-risk companies.

In June 2023, Frontal Trust entered the agriculture industry under the leadership of Gustavo Llona as Partner and CEO, focusing on agriculture investments across Chile, Peru, and Colombia. A significant organizational milestone occurred in December 2023 with the formalized separation between Frontal Trust and the Miami team, which began operating under the brand 12ten Capital, though this did not affect Frontal Trust’s responsibilities for RCO, NNN, and Single Family fund activities.

The company underwent substantial board restructuring in 2018 and subsequent years, initially adding independent directors including former Education and Justice Minister Felipe Bulnes, former Finance Minister Rodrigo Valdés, and Sonda Chairman Mario Pavón in December 2018. Board composition continued evolving with multiple director changes through 2024, culminating in April 2024 when Alejandro Micco, Alejandra Cox, and Claudio Correa joined the board, replacing Rodrigo Valdés, Marta del Sante, and Catalina Silva.

Throughout its history, Frontal Trust demonstrated consistent growth from a focused real estate fund manager to a diversified alternative asset management platform spanning Real Estate, Infrastructure, Agribusiness, Private Equity, and Private Debt sectors across multiple international markets.

3) Key Executives

Andrés Echeverría serves as Chairman and Founding Partner of Frontal Trust S.A., having established the company in March 2015. Echeverría holds a Bachelor’s Degree in Business Management from Pontificia Universidad Católica de Chile and an MBA from the University of California, Los Angeles (UCLA), bringing extensive financial industry experience spanning over nine years as CEO of Bicecorp, the parent company of Banco Bice and Bice Vida. Prior to founding Frontal Trust, he worked as Investment Banking Vice President at Deutsche Bank (formerly Bankers Trust), where he led financial transactions in equity and debt markets and M&A operations in Chile and the United States, and began his career at Citicorp Chile. He was a founding partner of EPG Partners, a private equity financial services boutique focused on investment banking, real estate funds and wealth management that began operations in 2009, and has served as a professor at both Pontificia Universidad Católica and Universidad de los Andes.

Claudio Mehech Labán was appointed CEO of Frontal Trust Administradora General de Fondos S.A. in December 2023. He holds a degree in Civil Engineering from Universidad de Chile and an MBA from The Wharton School, University of Pennsylvania, bringing 20 years of experience in the financial sector across Investment Banking, Asset Management, Wealth Management, and strategic consulting throughout various Latin American countries. Prior to joining Frontal Trust in 2023, Mehech held executive positions at Moneda Asset Management and Credicorp Capital Chile.

Jorge Prieto serves as Managing Partner, having joined Frontal Trust in 2017 after developing an extensive career in mergers and acquisitions. He holds a degree in Industrial Engineering from Pontificia Universidad Católica de Chile and an MBA from University of California, Los Angeles (UCLA), and previously held the position of CFO at CCU Chile before joining the firm.

Benjamín Viel serves as Managing Partner, joining Frontal Trust in 2021 after an extensive career in corporate finance. He holds a degree in Industrial Hydraulic Engineering from Pontificia Universidad Católica de Chile and an MBA from INSEAD, and previously served as Executive Director of Investment Banking at J.P. Morgan Chile.

Raúl Benavides serves as Managing Partner for Frontal Trust Peru, leading the company’s Lima operations since the office’s establishment in August 2021. He serves as Partner and Portfolio Manager for the Peru division, directing the company’s investment activities in the Peruvian market.

Gustavo Llona joined as Partner and CEO of the Agribusiness division in June 2023, leading Frontal Trust’s entry into the agriculture industry with a focus on agriculture investments across Chile, Peru, and Colombia.

Francisca Palacios serves as Chief Operating Officer, overseeing the company’s operational management and day-to-day business activities.

Ingrid Schulz holds the position of Compliance Officer, responsible for ensuring adherence to regulatory requirements and maintaining compliance standards across the organization.

Carmen Vicuña assumed the role of Risk Manager in December 2023, coinciding with the appointment of the new CEO, and is responsible for overseeing the company’s risk management framework and processes.

Rodrigo Escala Amigo took over as Commercial and Distribution Manager in July 2024 with the goal of strengthening business relationships with the current client portfolio and expanding reach to new investors.

4) Ownership

Frontal Trust S.A. operates under a highly concentrated ownership structure with Frontal Trust Holding SPA holding 99.99% of the company’s shares (6,899 shares), while Inversiones Rinconada SPA maintains a nominal 0.01% stake (1 share) as of December 2024. This ownership structure represents a typical concentrated control arrangement commonly seen in Chilean corporate entities, where a single holding company maintains virtually complete ownership of the operating subsidiary.

The ownership concentration has remained stable with no significant changes documented in recent regulatory filings. The current structure ensures unified control and decision-making authority within the parent holding company, which facilitates strategic coordination across Frontal Trust’s diversified alternative asset management operations spanning Real Estate, Private Equity, Private Debt, Infrastructure, and Agribusiness sectors.

The company’s ownership through Frontal Trust Holding SPA reflects the institutional structure established to manage the broader Frontal Trust business ecosystem. This holding company arrangement provides operational flexibility for the parent entity to oversee multiple investment vehicles and funds while maintaining consolidated ownership of the fund management operations through Frontal Trust Administradora General de Fondos S.A., the regulated subsidiary that operates the day-to-day fund administration business.

The minimal shareholding by Inversiones Rinconada SPA appears to serve administrative or regulatory compliance purposes, as is common in Chilean corporate structures where a small minority stake may be maintained by related entities or founding parties to meet certain legal requirements or maintain specific governance arrangements.

This concentrated ownership structure supports Frontal Trust’s business model as an alternative asset manager where unified control enables rapid decision-making and strategic alignment across the firm’s diverse investment platforms. The structure also facilitates the company’s co-investment approach, where the firm directly participates alongside its clients in investment opportunities across its various fund vehicles.

5) Legal Claims and Actions

Based on available regulatory and legal databases, no material legal claims, regulatory enforcement actions, or disciplinary proceedings have been identified against Frontal Trust S.A. or its subsidiary Frontal Trust Peru during the 10-year period from 2016 to 2026. The company appears to maintain a clean regulatory record with no documented sanctions, fines, or adverse actions from Chilean financial regulators or international regulatory bodies in jurisdictions where the firm operates.

No SEC enforcement actions, claims, or disciplinary measures have been recorded against Frontal Trust S.A., consistent with the company’s status as a Chilean-domiciled fund manager operating primarily under Chilean regulatory oversight rather than U.S. securities regulations. The absence of SEC-related matters aligns with the firm’s operational structure as a non-U.S. registered entity focusing on Latin American markets.

Chilean Financial Market Commission (CMF) records do not reflect any material regulatory enforcement actions, compliance violations, or sanctioned activities involving Frontal Trust S.A. during its operational history since incorporation in 2015. The company operates under Chilean Law No. 20.712 on Third-Party Fund and Individual Portfolio Management with ongoing CMF supervision, indicating adherence to established regulatory requirements for fund management activities in Chile.

Cross-border regulatory compliance appears consistent with the firm’s international operations, with no documented violations related to its former Miami office operations (2020-2023) or ongoing Lima, Peru activities through Frontal Trust Peru. The December 2023 separation between Frontal Trust and the Miami team, which began operating under the brand 12ten Capital, occurred without any documented regulatory complications or enforcement concerns affecting either entity.

Employment-related litigation, discrimination claims, or workplace disputes involving Frontal Trust S.A. have not been identified in available legal databases. The company’s organizational changes, including multiple executive appointments and board composition modifications throughout 2023-2024, appear to have occurred without generating legal disputes or employment-related claims.

No criminal convictions, fraud allegations, or misconduct charges have been documented against current or former executives of Frontal Trust S.A. during their tenure with the company. The leadership team, including founder Andrés Echeverría and current CEO Claudio Mehech Labán, maintains clean legal records without adverse regulatory findings or disciplinary actions from financial industry regulatory bodies.

The absence of material legal claims during Frontal Trust’s operational period from 2015 to present suggests effective compliance management and adherence to regulatory requirements across the firm’s diversified alternative asset management activities. This clean regulatory record supports the company’s institutional credibility and ongoing operations under Chilean financial regulatory oversight.

6) Recent Media Coverage

In January 2026, Chilean financial newspaper Diario Financiero reported that Toesca Holding and Toesca Capital reached an agreement to acquire 100% of Frontal Trust Administradora General de Fondos S.A. The transaction, which excludes the Eco Plaza Egaña real estate project linked to Inmobiliaria Fundamenta, is intended to consolidate Toesca’s position in the alternative asset market. Carlos Saieh, CEO of Toesca Asset Management, stated the acquisition aligns with the firm’s regional growth strategy; the combined entity is projected to manage approximately $1.688 billion in assets, positioning it as the eighth-largest manager in the local market.

Financial media outlet Leaders League reported in December 2024 that the Frontal Trust Mercado Pago public investment fund secured $25 million in financing from Banco Security. The financing, which closed on November 25, 2024, involved legal counsel from Larrain y Asociados for Banco Security and Coeymans, Edwards, Poblete & Dittborn Abogados for Frontal Trust. This followed a November 2024 announcement of a new fund to finance the credit portfolio of merchants on the Mercado Libre platform in Chile. In October 2024, the company launched a fund in Mexico in partnership with Cordada and MXC Capital, aimed at supporting medium-sized businesses with capital from Mexican institutional investors, including pension funds (AFORES).

The firm’s leadership changes received media attention, with industry publication Fund Pro reporting in late 2023 on the appointment of Claudio Mehech Labán, formerly of Moneda Asset Management and Credicorp Capital, as the new CEO to “reinforce” the general fund administrator (AGF). The appointment of Carmen Vicuña as Risk Manager occurred concurrently in December 2023. The board was further modified in May 2024 with the appointment of José Antonio Martínez, who concluded his 25-year tenure as CEO of the Santiago Stock Exchange on April 30, 2024, as a director. In late 2025, the company announced via LinkedIn the appointment of Jimena Llosa, a former partner at Compass Group, to its board, increasing its size to six members.

Significant strategic and operational developments were covered in 2023 and 2024. In August 2023, the firm finalized the transfer of its 51% stake in the automotive financing company, Autofin, to Banco Internacional. In December 2023, Frontal Trust formalized the separation of its Miami-based team, which began operating under the brand 12ten Capital, with Frontal Trust retaining its responsibilities for the RCO, NNN, and Single Family funds. In March 2023, the company announced its participation in the capital raising for Bridge Investment Group’s $2.26 billion Bridge Multifamily Fund V, which for the first time included South American investors. Also in March 2023, the firm reported that Chile’s Environmental Assessment Service (SEA) issued a resolution upholding environmental permits for the Egaña-Sustainable Community project, in which Frontal Trust is an investor through several real estate funds.

Frontal Trust maintained a positive public and regulatory media profile. In late 2025, Chairman Andrés Echeverría commented on signs of recovery in the Chilean real estate market during an interview on Radio Duna. The firm launched a podcast series, ‘Conversaciones Frontal Trust,’ in April 2024 and co-organized a seminar on pension reform with the University of Chile in August 2024. Notably, when Chile’s Financial Market Commission (CMF) sanctioned several private investment fund managers in January 2025 for breaching information duties, Frontal Trust S.A. was not included among the sanctioned entities.

7) Strengths

Experienced and Credentialed Leadership Team

Frontal Trust S.A. benefits from exceptional leadership depth with founder Andrés Echeverría bringing over nine years of CEO experience at Bicecorp (parent company of Banco Bice and Bice Vida) and previous Investment Banking Vice President experience at Deutsche Bank, where he led significant financial transactions in equity and debt markets across Chile and the United States. The December 2023 appointment of Claudio Mehech Labán as CEO further strengthens leadership capabilities, as he holds an MBA from The Wharton School and brings 20 years of financial sector experience across Investment Banking, Asset Management, and Wealth Management throughout Latin America. This combination of seasoned industry expertise and proven track record in financial services provides strong strategic guidance and institutional credibility essential for alternative asset management.

Comprehensive Multi-Sector Alternative Asset Platform

The company has successfully evolved from a focused real estate fund manager to a diversified alternative asset management platform spanning five core business areas: Real Estate, Private Equity, Private Debt, Infrastructure, and Agribusiness. This diversification provides multiple revenue streams and reduces concentration risk while allowing the firm to capture opportunities across different market cycles and economic environments. The company’s ability to manage dozens of both public and private investment funds across these sectors demonstrates operational scalability and sophisticated fund administration capabilities that differentiate it from single-strategy competitors.

Strategic Co-Investment Model and Alignment

Frontal Trust employs a distinctive co-investment approach where the firm directly participates alongside clients in investment opportunities, demonstrating confidence in investment strategies and alignment of interests. This model provides transparency and shared risk that has become increasingly important as institutional investors demand enhanced alignment with general partners. The co-investment structure also generates additional fee income while allowing the firm to benefit directly from successful investment outcomes, creating a dual incentive for performance excellence.

International Geographic Diversification

The firm’s operations across Chile, Peru, and strategic partnerships spanning Mexico, Spain, and Colombia position Frontal Trust to access diverse investment opportunities and serve clients seeking regional Latin American exposure. The establishment of investment offices in Lima (August 2021) and previous Miami operations demonstrates the company’s commitment to multi-jurisdictional growth strategies that many smaller Chilean competitors cannot match. This geographic footprint provides currency and market diversification while enabling access to cross-border investment flows and specialized deal flow in different regional markets.

Strong Regulatory Compliance and Institutional Infrastructure

Frontal Trust operates under Chilean Law No. 20.712 and maintains Financial Market Commission supervision, providing institutional credibility and regulatory compliance essential for institutional investor mandates. The firm’s membership in the Global Impact Investing Network since 2022 enhances positioning for ESG-focused institutional mandates and demonstrates commitment to sustainable investment practices. Recent organizational strengthening includes the December 2023 appointment of experienced executives including Risk Manager Carmen Vicuña, reflecting proactive management of operational and financial infrastructure that supports institutional-grade operations.

Proven Track Record in Complex Infrastructure Transactions

The company demonstrated significant transaction execution capabilities through the February 2019 acquisition of 33% stakes in Vespucio Norte and Túnel San Cristóbal infrastructure assets from Canadian fund Brookfield, establishing Frontal Trust as the first Chilean investment fund to own urban highway assets. This institutional-scale transaction demonstrates the firm’s capabilities in complex infrastructure investments that require substantial due diligence and transaction execution expertise, positioning the company competitively for similar large-scale alternative asset opportunities that generate substantial management fees.

Strategic Partnership Network and Specialist Expertise

The firm’s collaboration model with specialist managers in each industry sector enables access to specialized expertise while maintaining operational efficiency. Strategic partnerships include EverWest for North American real estate investments, relationships with Fundamenta and Surmonte for Chilean residential development, and collaborations with technology companies like Xepelin for Mexican market expansion. These partnerships provide competitive advantages in accessing specialized deal flow and expertise across different markets and sectors while reducing the need for extensive internal sector-specific teams.

Technology-Enhanced Investment Platform

Frontal Trust has demonstrated innovation in product development through technology-enabled platforms including Cordada for SME financing and partnerships with fintech companies for market expansion. The firm’s launch of unique investment vehicles such as the “Frontal Trust Rendimiento con Liquidez” public fund offering daily accrual with 30-60 day redemption policies reflects sophisticated product development aligned with evolving investor needs. This technology integration and product innovation capability positions the company competitively in digital transformation trends affecting the broader asset management industry.

8) Potential Risk Areas for Further Due Diligence

Complex Organizational Structure and Related Party Relationships

Frontal Trust S.A. operates through a highly concentrated ownership structure with Frontal Trust Holding SPA controlling 99.99% of the company, creating potential risks associated with concentrated decision-making authority and limited external oversight. The company’s extensive network of strategic partnerships across multiple jurisdictions with specialist managers in each industry sector creates complex webs of relationships that may obscure potential conflicts of interest or related party transactions. The firm’s co-investment approach, while aligned with client interests, creates inherent conflicts where the company directly participates alongside clients in investment opportunities, requiring careful monitoring to ensure fair treatment of all parties. The December 2023 separation from the Miami team that formed 12ten Capital demonstrates the complexities of managing international operations and strategic partnerships, which could create operational and legal vulnerabilities if not properly structured and monitored.

Regulatory Compliance and Cross-Border Risk

Operating across multiple jurisdictions including Chile, Peru, and previously the United States exposes Frontal Trust to varying regulatory requirements and potential compliance gaps. While the firm operates under Chilean Law No. 20.712 and maintains CMF supervision, the complexity of managing funds with cross-border investments and international partnerships creates regulatory compliance risks. The company’s management of both public and private investment funds across different asset classes requires adherence to diverse regulatory frameworks, with potential exposure to regulatory changes in key markets. The January 2026 pending acquisition by Toesca Holding introduces additional regulatory approval risks and potential compliance challenges during the ownership transition period.

Key Person and Leadership Dependency Risk

Frontal Trust exhibits significant dependency on founder and Chairman Andrés Echeverría, who has been the driving force behind the company’s evolution from a focused real estate fund manager to a diversified alternative asset platform since 2015. The recent leadership changes, including the December 2023 appointment of CEO Claudio Mehech Labán and multiple board composition changes throughout 2024, create transition risks during a critical growth phase. The company’s partnership-driven business model relies heavily on key relationships with specialist managers across different sectors and geographies, creating vulnerability if critical partnerships deteriorate or key personnel at partner firms depart. The firm’s co-investment approach requires sophisticated decision-making capabilities that may be concentrated among a limited number of senior executives.

Operational and Technology Infrastructure Risk

As an alternative asset manager operating across multiple jurisdictions with complex fund structures, Frontal Trust faces operational risks related to fund administration, investor reporting, and regulatory compliance systems. The company’s expansion into technology-enabled platforms including Cordada for SME financing and partnerships with fintech companies creates operational dependencies on technology infrastructure and cybersecurity vulnerabilities. The firm’s management of dozens of both public and private investment funds requires sophisticated operational systems that may be vulnerable to human error, system failures, or data breaches. The recent organizational changes and rapid expansion across different asset classes may strain existing operational capabilities and create gaps in oversight or control procedures.

Market and Investment Concentration Risk

Despite diversification across five core business areas, Frontal Trust maintains significant exposure to Latin American markets, particularly Chilean and Peruvian real estate and economic conditions. The company’s substantial involvement in real estate investments through multiple funds creates concentration risk to property market cycles and local regulatory changes affecting real estate development. The firm’s co-investment model, while creating alignment with clients, also concentrates the company’s own capital in the same investments as client funds, potentially amplifying losses during adverse market conditions. The relatively recent expansion into new asset classes including agribusiness (June 2023) and various international markets may strain management expertise and create performance risks in unfamiliar sectors.

Financial Crime and Anti-Money Laundering Risk

As an investment fund manager handling substantial client assets across multiple jurisdictions, Frontal Trust faces inherent exposure to money laundering, terrorist financing, and sanctions violations. The company’s operations across emerging markets including Peru and previously in markets with complex regulatory environments creates heightened due diligence requirements for client onboarding and ongoing monitoring. The firm’s extensive partnership network and cross-border investment activities require robust systems for ultimate beneficial owner identification, sanctions screening, and suspicious activity reporting. The alternative asset focus, including private debt and complex investment structures, may attract clients seeking less transparent investment vehicles, requiring enhanced due diligence procedures.

Emerging Market and Currency Risk

Frontal Trust’s concentration in Latin American markets exposes the firm to emerging market volatility, political instability, and currency fluctuations that could significantly impact fund performance and client relationships. The company’s operations in multiple currencies including Chilean pesos, US dollars, and other regional currencies creates foreign exchange risk that may not be fully hedged. Political and economic developments in key markets, particularly Chile and Peru, could affect real estate values, infrastructure investments, and overall business conditions. The firm’s international expansion strategy may be vulnerable to changes in cross-border investment flows and regulatory restrictions affecting foreign investment in target markets.

Standard Emerging Market Considerations

Frontal Trust operates in emerging markets characterized by evolving regulatory frameworks, less developed capital markets, and higher political risk compared to developed markets. Currency volatility and capital flow restrictions common in Latin American markets could affect the firm’s ability to execute investment strategies or meet investor redemption requests. The emerging market environment creates challenges in obtaining reliable market data, conducting proper due diligence on investment opportunities, and ensuring consistent application of international best practices across all operations and partnerships.

General Industry Regulatory Risk

The alternative asset management industry faces ongoing regulatory evolution globally, with increasing focus on investor protection, fee transparency, and operational requirements that may require significant compliance investments. Changes in international financial regulations, particularly those affecting cross-border investment flows or alternative asset managers, could impact the firm’s business model and operational capabilities. Industry-wide trends toward increased regulatory scrutiny of private markets and alternative investments may require enhanced disclosure, reporting, and operational procedures that increase compliance costs and operational complexity.

Sources

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