HMC SAFI Sets Sights on Private Credit: Launching $150M Funds with RAD Legal Backing

Deal Structure and Key Players

Rebaza, Alcázar & De Las Casas, a leading full-service law firm in Peru, has been engaged by HMC Asset Management SAFI to structure two private credit investment funds. These funds are targeting a combined capital raise of approximately US$150 million.

These are private credit funds—meaning investment funds that provide debt financing, often through direct lending or other credit instruments to companies, rather than public equity or traditional bond issuance. They are not designated as public or retail funds but are positioned toward institutional investors.

Context & Precedent

HMC SAFI has already been active in the Peruvian investment fund market. For instance, in a prior structure, Rebaza advised on two public investment funds by HMC SAFI—”Fondo HMC Crédito Perú I (USD), FI” and “Fondo HMC Crédito Perú II (PEN), FI”—with targets of about US$250 million and S/863 million (~US$240 million), respectively. These funds were public offerings to qualified institutional buyers.

This new move into private credit complements the broader capital markets development in Peru, where firms and regulators are increasingly focused on unlocking alternative financing channels, especially for companies underserved by public markets.

Strategic Implications

• For investors: US$150 million in private credit represents both opportunity and risk. Investors will require strong underwriting, clear collateral or cash-flow protections, and transparency. Private credit in emerging markets often demands higher returns to offset political, currency, and default risk.
• For HMC SAFI: This expansion into private credit could help them differentiate their offering, deepen their relationships with institutional investors, and capture demand from mid-sized companies that do not yet qualify for public debt. It also suggests growing confidence in Peru’s regulatory and legal frameworks.
• For RAD: Advising on these structures reinforces its prominent role in structuring complex funds and capital market transactions—further solidifying its market position.
• For Peru’s financial ecosystem: This deal aligns with efforts to deepen capital markets, improve access to non-bank credit, and attract institutional capital. But it will also require robust risk management, regulatory clarity, and potential reforms in securities law or supervisory standards to ensure sound practices.

Open Questions and Risk Factors

• What is the investment strategy inside these private credit funds? Sectors, tenor, collateral, currency exposure? Without those details, assessing risk-return profiles is difficult.
• What are the legal and regulatory frameworks governing private credit funds in Peru—particularly with respect to investor protection, default enforcement, currency controls, and disclosure requirements?
• Will these funds tap into existing demand from institutional investors (insurance, pension funds, sovereign wealth funds)? What are the expected returns vs. benchmarks? Is there risk of overestimating capital procurement?
• How might macroeconomic risks—currency volatility, inflation, political instability—affect borrowers’ ability to service debt and impact fund performance?
• What oversight or rating / due diligence mechanisms will be employed to ensure fund credibility, attract quality capital, and maintain governance standards?