Fondo Escala Capital

in implementation

The project involves a private equity closed-end investment fund (the "Fund") for growth financing of small and medium-size companies, managed by Promotora de Proyectos, a private equity management company whose main shareholder is Grupo de Inversiones Suramericana S.A. Grupo de Inversiones Suramericana is the main shareholder of Grupo Bancolombia. The Fund’s administrator is Valores Bancolombia, a stockbroker for Grupo Bancolombia. The Fund is expected to close with investment commitments of CO$80 billion (eighty billion Colombian pesos), equivalent to approximately US$40 million.The Fund is organized under Decree 2175, enacted in June 2007 to establish a framework for the sound development of the equity investment industry in Colombia.The major investors are Colombian institutional investors and pension funds (they account for about 50%). Three development financial institutions, including the IIC, will account for about 25% of investment commitments.The Fund will invest to further the growth of small and medium-size companies in Colombia, primarily. Most of the Fund’s portfolio is expected to be composed of companies with annual sales below CO$40 billion, equivalent to approximately US$20 million.