RioBlanco targets $100M for third fund as it moves into hotels and dining
What's the deal? RioBlanco CapitalDealroom has a profile for this one. Try Dealroom → is raising about $100 million for RioBlanco Fund III, a private credit vehicle, while expanding into hospitality with two planned hotels in Puerto Rico. The fund has completed its first close and begun deploying capital as fundraising continues.
How does it work? The fund buys into loans rather than making them. "We don't originate loans directly," said cofounder and principal Gabriel Jiménez. "We participate in loans with other entities. Originators invite us into transactions, and we buy a piece of the loan."
Why now? Fund III, launched earlier this year, reflects a shift in how businesses seek financing, the firm says. It also marks RioBlanco's 10-year anniversary and coincides with rising tourism on the island.
What's the endgame? RioBlanco is building a vertical investment manager spanning private credit, real estate, hospitality, and fast-casual dining. The firm operates as a registered investment adviser regulated by the Securities and Exchange Commission and Puerto Rico's Office of the Commissioner of Financial Institutions.
The hotels. The first, a 100-room Moto by HiltonDealroom has a profile for this one. Try Dealroom →, will convert a Santurce building currently occupied by Banco PopularDealroom has a profile for this one. Try Dealroom →, with an investment of more than $25 million funded through RioBlanco equity and local bank debt. A second hotel, planned at 135 to 140 rooms, will be built in Aguadilla; its brand is not yet selected.
The core business. Real estate remains central. The LegacyDealroom has a profile for this one. Try Dealroom →, a $45 million, 44-unit luxury project in Guaynabo, has pre-sold more than 40% of its inventory — all to Puerto Rican buyers, including diaspora families planning to return in 2029, according to Jiménez.
What's next? The firm wants to move into affordable housing but says public-sector support is needed to make the economics work. It is also growing in fast-casual dining through investments in the QdobaDealroom has a profile for this one. Try Dealroom → and Slim ChickensDealroom has a profile for this one. Try Dealroom → franchises, the latter of which recently opened its first Puerto Rico restaurant in San Patricio.
The signal: "Our strategy is clear: tourism, luxury housing, fast casual, and private credit," Jiménez said. "And we're just getting started." The expansion shows a regional manager stacking operating businesses alongside its credit and property arms rather than specialising in one.
Read more: caribbean.business
Image credit: RioBlanco Capital
