The Bambu Fund LLC is taking an active role in infrastructure development and expansion of health, wellness and medical tourism within the Latin American Caribbean region (LAC). This commingled opportunistic private equity investment fund focuses on health care systems, facilities, senior living, medical tourism and related enterprises.
In addition to being good stewards of resources entrusted for investment, the Fund is keen on the creation of jobs that provide living wages and the qualitative and quantitative impact of long-term health related investment. We are corporately domiciled in the United States Virgin Islands, governed by American law; yet we have presence across the Caribbean.
The Bambu Benefit
The Bambu Fund LLC will spur economic growth and development by utilizing strategic partnerships with entities like Sagicor Investments, the Jamaica Promotions Corporation, the British Virgin Islands Ministry of Health and others committed to the achievement of mutual goals.
The Latin American Caribbean region (LAC) is strategically situated with highly desired multi-national tourism markets and several stable democratic governments. The area is a perfect location to invest and identify partnership and joint venture opportunities. In LAC Frontier Markets, we seek to establish world-class health and wellness businesses and reposition others to grow to scale, broaden their scope and enable them to add new channels for existing products and services. The Bambu Fund will balance a sweet spot between those investments that are longer term growth assets with compelling stories and those that will hit our targeted internal rate of return (IRR) 15 to 18 percent within four years. We expect to grow our business in general 5 to 6 percent annually. Our intention is to spur economic growth and development and to encourage international diversification of investment interest by considering a region where opportunity for growth and positive economic impact has been created in part from the devastation of the 2017 hurricanes.
The Fund as an alternative investment is not currently publicly traded on a listed exchange. Dell Computer and Berkshire Hathaway, for example, were once private investments that became bellwethers in the U.S. market. With an estimated US$14 trillion rolling into IRAs from baby boomers and greater investor sophistication, alternative assets are one of the fastest growing sectors for investment. This investment category provides for greater diversification. Bambu intends to be among the best of these alternatives. For an individual U.S. investor, when a Roth IRA is used to invest in the Fund, the money earned on the investment can grow tax-free. The Bambu Fund will be a substantial option for portfolio growth beyond the stock market. A pooled alternative investment strategy can also produce attractive and substantial portfolio risk reduction benefits to investors that are heavily weighted in more traditional listed equities and fixed income instruments.
The United States is estimated to have $2.2 trillion in institutional assets under management and private markets are estimated to compose as much as $316 billion of this amount. As a subcategory, Frontier Investments represent a niche that currently has $6.4 billion under management as measured by the MSCI Frontier Market Index. This is down from $8 billion in 2014, due in part to growth in Pakistan and Argentina, shifting them to “Emerging Market” status. Bambu intends to craft an appropriate Frontier Market measurement subindex for the LAC region. This performance measurement would be able to specifically withstand a Public Market Equivalent (PME) analysis as verification of our success over time.