Bienville Said to Wind Down Argentina Fund After 70% ReturnBy and
The $1.3 billion investment firm Bienville Capital Management is giving capital back to investors in its Argentina fund after returning about 70 percent since its inception three years ago, according to a person with knowledge of the matter.
The decision came as the $400 million Bienville Argentina Opportunity Fund, which was started in July 2014 to profit off the nation’s transition toward a market-friendly president, hit its return target two years early, said the person, who asked not to be named because the matter is private. The fund, which has a private-equity structure, has already exited its biggest winners and expects to return the remaining cash by year-end, the person said.
Carolyn Sargent, an outside spokeswoman for the firm, declined to comment.
Because the investment period for the fund lapsed at the end of last year, restricting the firm from seeking new opportunities, Bienville started another fund in April. Its Argentina Opportunities Fund 2.0 aims to take advantage of the next stage in the nation’s economic recovery, including initial public offerings and an expected upgrade of the country’s designation to an emerging market by MSCI Inc.
The new fund has more of a hedge fund structure than its predecessor with quarterly liquidity.
More than $200 million from the original fund rolled into the second fund, according to the person. The new fund gained 1.3 percent in its first month of trading, according to an investor document seen by Bloomberg.