How do you approach managing legal aspects during periods of instability or crises, and how does your legal strategy align with the broader business strategy to ensure the organisation’s resilience?  

Our investment strategy at Yellowstone focuses on long-term, large-scale real estate developments, typically spanning 6 to 10 years per project. As a result, our deal team is trained to navigate through diverse political and economic cycles over the lifespan of each investment and be mindful of any risks associated with our strategy. 

Central to our successful strategy is a rigorous risk assessment process, which allows us to proactively identify and mitigate potential legal challenges that may arise over time. We place a strong emphasis on ensuring compliance with regulatory frameworks and contractual obligations through our robust compliance programme and policies. 

Equally critical is our approach to structuring joint ventures. By implementing mechanisms that align the interests of operators, joint venture partners, and investors, we fortify the resilience of our investments, particularly during periods of instability. 

Furthermore, we are continuously monitoring our investments, market conditions, and regulatory landscapes. This proactive approach enables us to anticipate emerging risks and adapt our legal strategies accordingly. Such adaptability ensures that we can effectively tailor our approach to evolving environments and prioritise stakeholder interests. 

What are the main cases or transactions you have been involved in recently?  

Recent years at Yellowstone have been characterised by remarkable pipeline growth, successful deal closures, and strategic investments in Colombia. 

In June 2024, we achieved a significant milestone with the successful closing of our latest private equity fund, Yellowstone Flagstone Opportunity Fund IV, securing over USD 500 m in capital commitments. This fund stands as the largest private equity real estate fund with a focused strategy on Colombia ever raised, and it is also the largest in Latin America to close this year. Fund IV is designed to preserve capital while ensuring early liquidity through the development of sustainable, large-scale residential communities and income-producing landmark assets, building upon the proven success of its predecessor fund. 

Additionally, have committed over USD 12 m from our Fund II towards the development of 2,600 sustainable homes at a landmark site in Medellin, Colombia. This investment furthers Yellowstone’s deep commitment to sustainable real estate developments and its strategic emphasis on Colombia’s most iconic regions. 

Our transactional team anticipates closing additional deals and joint ventures totaling approximately US$150 million in Colombia’s real estate sector this year. 

What measures has your company taken to embed sustainability practices into its core business operations, and how does the role of the general counsel contribute to driving and ensuring sustainable practices within the company?  

Yellowstone has been a pioneer in advancing sustainability practices within Colombia. We were the first general partner in the country’s real estate sector to sign onto the principles of responsible investment (PRI), underpinning our commitment to sustainable development. Our firm maintains a robust sustainable investment policy, which guides our operations. 

Our latest fund, Yellowstone Flagstone Opportunity Fund IV, reflects our dedication to sustainability with specific obligations outlined in our partnership agreements. These include compliance with our sustainable investment policy, regular reporting to corporate bodies, and rigorous ESG (Environmental, Social, and Governance) due diligence requirements for new projects. 

Also, we have a dedicated professional overseeing the sustainability practice across our firm and funds that works in tandem with the legal team to secure compliance with regulatory requirements and internal policies. Both the legal team and the head of ESG report to a sustainability committee of the firm.