Latin America’s #PrivateEquity sector raised record amounts in 2010
Private equity firms investing in Latin America raised a record $8.1 billion in 2010, more than twice the previous year, partly because of growing interest from local investors. This is according to the Latin American Venture Capital Association.
Momentum is building in Mexico, Colombia, Peru, Chile and Argentina, where less competition for existing assets is bringing the attention of dealmakers.
But, Brazil, the region’s biggest economy, kept luring the most commitments and investors last year, because of its diversified economy.
"As private equity and venture capital environments improve and political and economic factors remain favorable, we are seeing unprecedented interest from global investors looking to diversify their portfolios," Cate Ambrose, president of LAVCA, said in a statement.
Deals are growing in size, which indicate that private equity investors are beginning to perceive the long-term benefits of investing in Latin America. This is in stark contrast to a 7% decrease in funds in the US and a 32% fall in Europe.
Approximately 46% of last year’s buyouts took place in Brazil, where 76% of the region’s commitments for private equity landed, LAVCA said.