Tribeca Investment Partners is exploring investment opportunities in Venezuela following a strong performance in its natural resources strategy, as the hedge fund positions itself to capitalise on what it views as a rapidly opening market, according to a report by Bloomberg.
The report cites Portfolio Manager Ben Cleary as revealing that the firm’s Tribeca Global Natural Resources feeder fund generated estimated returns of 127% last year. Tribeca has since dispatched a team to Caracas to meet potential partners and assess assets on the ground, with discussions already held with local companies over the weekend.
Cleary said investor interest in Venezuela has intensified sharply, with banks and brokers facilitating introductions as global investors seek early exposure. He described current activity as a rush to assess opportunities across the country’s resource and energy sectors.
The renewed focus on Venezuela follows recent US intervention that has reshaped the country’s political and economic outlook, although the situation remains highly uncertain. US President Donald Trump has indicated that US energy companies could commit substantial capital to rebuild Venezuela’s degraded energy infrastructure, potentially unlocking significant investment opportunities if conditions stabilise.
Cleary, a partner and director at the $4bn Tribeca Investment Partners, said the firm could allocate up to 10% of fund capital to Venezuela should reforms materialise and the environment become more accessible to foreign investors.
Potential investments include stakes in publicly listed companies expected to benefit from increased commodity production, as well as private credit opportunities for domestic firms. Fixed income investors have already seen gains, with Venezuelan bond prices rebounding in recent months amid shifting political expectations.
Despite growing interest, risks remain elevated. International opposition to US actions has emerged, led by China, and questions persist around asset security, legal protections and the broader stability of the operating environment.
Those uncertainties may limit participation by larger institutional investors such as pension funds, sovereign wealth funds and large private equity firms, potentially giving more agile hedge funds a first-mover advantage.
Cleary said that by the time more constrained investors are able to deploy capital, the most attractive returns may already have been captured.
