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Portland Private Equity won’t proceed with Portland Caribbean Fund III, which received over US$100 million in capital commitments last year, or about a third of the targeted funds.
“It is now in the process of being terminated,” said Portland partner Ricardo Hutchinson, who is also chairman of Portland JSX Limited. “Due to a number of changed circumstances, the limited partners opted to terminate the fund,” he said in comments to the Financial Gleaner.
Funds globally are facing challenges, but recent reductions in interest rates have resulted in improved outlooks.
PCF III sought to raise about US$330 million, but now that will not happen. It would have become the third successive regional fund of Portland Private Equity, which is controlled by investor Michael Lee-Chin. PCF III closed on its first round of capital commitments from leading, global institutional investors last year. Future commitments were expected to follow.
The cessation holds implications for Portland JSX, which invests in the Portland Caribbean Funds controlled by Portland Private Equity. Portland JSX had initially planned “US$32 million in capital commitments” to PCF III, according to its annual report, but the company’s latest third-quarter financial results revealed a pivot away from the partnership.