Brigard Urrutia

On June 27 2019, the Institutional Limited Partners Association (ILPA) issued the third version of the private equity principles (principles). The principles continue to reiterate that the essence of an effective private equity partnership is built on the alignment of interests, governance and transparency; however, this third version also addresses new issues.

Article 20 of Law 1882 of 2018 was very important for reactivating the financing of the 4G concession road projects, because it clearly stated the guidelines for calculating the termination payment in concession agreements in the case of early termination events caused by a declaration of invalidity. On August 30 2018, the Controller General filed a claim of partial unconstitutionality of the article before the Colombian Constitutional Court, arguing that this article contravened the prohibition of illicit enrichment, among other arguments.

Law 1870 of 2017, the Colombian Financial Conglomerates Law entered into force on February 6 2019. The Colombian Superintendence of Finance (SFC) has begun the process of supervising 13 financial conglomerates in the country, five of which are local and eight foreign. The SFC will supervise: Sura – Bancolombia Group, Aval Group, Bolívar financial conglomerate, BBVA Colombia, Fundación Social, Coomeva, Scotiabank Colombia, Itaú Colombia, BNP Paribas Colombia, BTG Pactual Colombia, Credicorp Capital Colombia, GNB Sudameris Colombia and Old Mutual Colombia.