Brooke Jones, Associate Director at the Carnegie Corporation of New York, discussed her takeaways from a recent trip to Latin America and Carnegie’s emerging market investment strategy. Jones also shared her views on impact investing and the effect of Carnegie’s unique time horizon on its investment strategy. Read more
Credito: Didier Ramírez
September 13, 2012 – El sector de consumo y supermercados en América Latina es el más atractivo para los inversionistas en fondos de capital privado (Limited Partners – LP), superando a segmentos como servicios financieros y educación, según revela la encuesta de Coller Capital y Latin American Private Equity & Venture Capital Association (LAVCA).
Con base en el ejercicio realizado por Coller / LAVCA, 75% de los fondos latinoamericanos consultados identificaron al segmento de consumo o retail como el más atractivo para canalizar sus inversiones. En tanto, para las organismos con sede fuera de América Latina cerca del 70% lo consideraron como el rubro más atractivo.
En ese terreno es en el único en donde existe coincidencia entre los LP latinoamericanos y los foráneos. Para quienes tienen su origen en América Latina, el segundo rubro en interés para invertir es el de energías limpias y alternativas, mientras para quienes están fuera de esta zona, se ubican los servicios financieros.
En México, el sector de retail o supermercados en conjunto con el consumo, se muestra como el más atractivo y ello se puede analizar con las inversiones realizadas por diferentes de fondos de capital privado, consideró Cate Ambrose, presidenta ejecutiva de LAVCA, seguido de este rubro, en el territorio el ramo de educación se presenta como un área de crecimiento.
Otro elemento que revela el estudio conjunto, es la perspectiva que tienen los inversionistas hacia los fondos multi-sectoriales, y en donde 78% de los LP los prefieren, en tanto que el 65% de los encuestados opta por sectores específicos. Esto, mencionó Ambrose, es una señal para favorecer la diversificación de los gestores de fondos.
By Jonathan Shieber
The Wall Street Journal
September 12, 2012 – Limited partners are going to be spending a lot more time south of the Rio Grande in the coming year, according to a new survey from Coller Capital and the Latin American Venture Capital Association.
Investments in Latin America are expected to climb steadily for the next few years, according to data released by the organization, thanks to a favorable political climate, continuing domestic growth and a young population and growing middle class.
Long the darlings of emerging market investors, China and India have lost some of their luster with their slowing economies, according to the survey and industry experts, and investors are looking to Brazil and other Latin American countries to pick up the slack.
Of the limited partners with some exposure to Latin America, 73% see the region’s deal flow and economic growth potential as attractive compared with other emerging private equity markets.
Among Latin American markets, Brazil still reigns supreme, as the concerns earlier this year about the inflated value of the Brazilian real have diminished thanks to recent decline in the currency.
“One of the biggest issues has been building in the currency risk,” said Peter von Lehe, a managing director at Neuberger Berman. “We are more bullish today because the currency is less overvalued.”
For the Neuberger Berman alternative investment team, the concern in Latin America is more about funds raising too much capital than the overall opportunity in the market. According to von Lehe, multi-billion dollar funds in the region just don’t have many options to put their capital to work.
While Brazil has held the attention of the investment class for some time, limited partners are looking closely at other Latin American countries, including Colombia, Peru and Chile.
Mexico, in particular, has emerged as one of the top benefactors from the new found attention on Latin American markets because of its correlation to the growth of the U.S. Hispanic market, according to the LAVCA head.
From Coller’s perspective, the amount of capital flowing into the market means an opportunity for interesting secondary deal flow in another two to three years, said Erwin Roex, a partner with Coller Capital.
Roex said he believes the only obstacle to the further development of private equity in the region will be a shortage of experienced managers. Beyond that, the conditions are ripe for continued growth across the region, he said.
by Joanna Glasner
September 11, 2012 – Private equity limited partners have considerably increased Latin American investments in recent years, and new data indicates they will want to continue.
Two-thirds of those already investing in the region say they plan to maintain or raise allocations in the next year, according to a survey published today by the Latin American Private Equity & Venture Capital Association (LAVCA) and Coller Capital.
The survey, which included input from 105 private equity investors worldwide, found that LPs active in Latin America saw the region’s economic growth potential and deal flow as the its biggest strengths. Underdeveloped IPO and M&A markets and the regulatory and tax environments were cited as Latin America’s weakest points.
The findings come on the heels of what has been a robust fund-raising climate for Latin America-focused venture and private equity firms. In 2011, funds in the region raised a historic record of $10.3 billion, up 27% from the $8.1 billion raised in 2010, according to LAVCA. Of that, Brazil-dedicated funds captured the lion’s share of capital committed in 2011, bringing in $8.1 billion. The bulk of that went to funds raised by local firms Gávea Investimentos, Vinci Partners, BTG Pactual and Patria Investimentos.
Both Latin American and international investors told surveyors they believe the consumer goods and retail sectors offer attractive investment opportunities for GPs in Latin America over the next three years. However, there were variations in the views of international and domestic LPs on some other sectors. Cleantech and life sciences are roughly twice as popular with Latin American investors as with international LPs. Meanwhile, international investors are more enthusiastic about opportunities in the financial services and agribusiness sectors than Latin American LPs are.
Just over three quarters investors surveyed said they expect net annual returns of 16% or more from their Latin American PE funds (excluding Brazil), and two thirds (65%) expect the same returns from Brazilian PE funds.