Alternative investment specialist Tranen Capital has won a license to set up a representative office in Colombia.

The approval is a significant achievement for the company, it said, as it is only one of the few foreign entities given the go-ahead to sell shares of an investment fund in the country, Tranen said in a statement. The move also marks a milestone for the alternatives sector, which is starting to play a key role in emerging markets.

Through the Tranen Capital Alternative Investment Fund, the company taps a larger share of the $16 billion alternatives market, which, according to financial consultant Sanford Bernstein, is expected to grow to around $160 billion over the next few years. At present, the Tranen fund has over $100 million in assets under management, covering the likes of corporations, pension plans, banks, and high net worth individuals.

"Tranen Capital's entry into Colombia opens the South American marketplace and reflects its strategy to become a globally-based investment vehicle," Arthur Bowen, managing director, said.

According to the Latin Business Chronicle, foreign direct investment in Colombia has reached $48.6 billion as of 2009, up 150 per cent from seven years before, when the country was hit by terrorism alerts. The country's economy has markedly improved since the change in government leadership in 2001.