Investors eye Venezuelan opportunities after Maduro's capture; 3 trips planned in coming weeks, says report—All we know

Investors from the United States and other countries are set to travel to Venezuela in the coming weeks, after the US said it was restoring diplomatic relations with the South American country, as part of a new era after former leader Nicolas Maduro's capture by Donald Trump.

The travel party, spread across three trips organised by separate advisory groups, includes hedge fund managers, energy bigwigs and dozens of investors from the US and other countries, according to a Reuters report on 7 March.

The investors will meet with Venezuelan politicians and business leaders, and scout investment opportunities energy, finance, technology, oil and gas, and real estate, it added.

Investor interest in Venezuela on rise?

According to the Reuters report, the trips are organised by Orinoco Research (Caracas-based), Trans-National Research (New Jersey-based), and Signum Global Advisors (London-based). Reuters was the first to report on the former two, while Signum's trip has been public for some time now, it added.

Venezuela houses the world's largest proven oil reserves but owes over $100 billion in debt that needs restructuring. The government under Interim President Delcy Rodriguez has proactively sought to better terms with the US following Maduro's capture in January. On 5 March, the two countries agreed to re-establish diplomatic ties.

Speaking to Reuters, Miami-based Jesse Cole, president of Sky Drop Capital, who set up a manufacturing facility in the Latin American country in 1998 but left in 2011, feels that this is a “coiled spring of opportunity… The Venezuela I left, I don't think is the Venezuela I'm returning to”.

Cole said offices managing high net-worth families, individuals and private equity (PE), are keen to invest $25-100 million each, in the country.

Three advisory groups plan investor trips to Venezuela

• The report cited a source to report that Trans-National's trip is planned for 16-17 March. President Marc Zeepvat confirmed the trip to Reuters, but did not share dates or an agenda, but said focus would be on gauging “macroeconomic and political stability”.
• Signum's trip of 55 participants is scheduled for 22-24 March, and founder-chairman Charles Myers told the publication about half of these are asset managers and hedge funds.
• Meanwhile, Orinoco's two-day trip is scheduled for April, founder Elias Ferrer confirmed to the agency, adding that participants (primarily bond holders) will meet senior-level Venezuelan officials to “gather information and share ideas for the country's restructuring”.

Other attendees on the $7,000/person trip include oil and real estate sector investors. Most participants are American, Ferrer added. This trip also includes a beach visit to the Los Roques archipelago.

The report cited sources to state that across the trips, big Venezuelan names are listed on the draft agendas — Rodriguez, central bank policymaker Laura Guerra, Finance Minister Anabel Pereira, Mining Minister Hector Silva, PDVSA CEO Hector Obragon, and stock exchange CEO Jose Grasso to name a few.

The Venezuelan communications ministry, PDVSA, central bank and Caracas stock exchange did not respond to queries on the same.

White House spokeswoman Taylor Rogers said that critical minerals, mining, and oil and gas companies are moving at “Trump speed” to invest in Venezuelan markets.

(With inputs from Reuters)