Criatec II the First of Two Investiments in Minas Gerais (em português)

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(Press Release) The largest innovation and entrepreneurship fund in Brasil, Criatec II managed by Bozano Investimentos, Capital Triaxis and HR Partners, provides support to more than six mining companies with an investment of R$20m. Two companies are the first in Minas Gerais to receive investments from Criatec II. Read more

Partners Group to Finance Telecommunication Between New York & São Paulo

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(Dow Jones) In a bid to boost communications capabilities between North American and Brazil, Partners Group is committing new capital to back construction of a subsea fiber optic cable, Seabras-1, between New York and São Paulo. Read more

‘Brazil is Not For Beginners’ Says Warburg Pincus’ Chip Kaye

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(Wall Street Journal) It’s been a tough year for Brazil.

A crushing loss in the World Cup. Roiling markets and hits to its currency ahead of the upcoming presidential election. Growth rates that are a mere fraction of what they once were. Waning enthusiasm from institutional investors.

Despite the grim macro (and sporting) picture, private equity firms seeking investment there remain undeterred.

“When you invest in emerging markets, you’ve got to recognize the inherent cyclicality,” said Warburg Pincus Co-Chief Executive Charles “Chip” Kaye during a keynote address at the Latin American Private Equity & Venture Capital Association Summit and Investor Roundtable in New York Wednesday.

“While we think about the macro context of how we’re investing, we don’t invest top down, we invest bottom up,” he said. “I think you can get lost sometimes speculating on the nature of macro economic developments.”

Quoting his colleague Alain Belda, the former Alcoa CEO who now runs Warburg’s Latin America business, Mr. Kaye described Brazil as “not for beginners,” given the presence of a strong local private equity community and the desire of large global private equity firms to have a presence there.

Indeed, Brazil continues to capture the lion’s share of private equity investment and fundraising in Latin America. Nearly 70% of the $8.9 billion invested in Latin America in 2013 went to Brazil. The country also captured 43% of the $5.5 billion raised to invest in the region, according to data from LAVCA.

Under the parameters of its fund, Warburg has the flexibility to invest around the world, in a variety of different structures, from venture capital style plays to growth equity investments to traditional buyouts. Mr. Kaye said that roughly half of the firm’s $11.2 billion fund, which closed in May 2013, had already been called down for deals and around two-thirds of it was already committed to deals.

Mr. Kaye said the firm’s four investments in Brazil have been broadly in the $100 million to $200 million range, somewhat smaller than deals in India and China where deals have been in the $300 million to $500 million range.

The “emerging consumer theme” is what drives much of the firm’s investments across developing markets.

“Whether that’s consumer retail, financial services, healthcare, it’s expressed in a lot of ways,” he said.

In Brazil that has translated into investments in a commercial bank, Banco Indusval & Partners, fashion brand Dudalina SA, hydro power and wind project developer Omega Energia Renovavel SA and Pet Center Comércio e Participações SA, a retailer of pet food, accessories and services.

The firm’s historical focus on energy is prompting it to look closely at other countries within Latin America. Mr. Kaye said the firm was eyeing a potential deal in Colombia to shore up infrastructure for transporting oil.

Banco Santander To Sell Half Of Custody Business To Warburg Pincus-led Group

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(RTT News) Grupo Financiero Santander Mexico,said that its parent company Spanish bank Banco Santander has agreed to sell a 50% stake in its custody business in Spain, Mexico and Brazil to a group led by private equity firm Warburg Pincus. Read more

Advent Targets US$2b for Fund VI in Latin America

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(PEHub) Several sources said Advent International is set this month to launch its Latin American Private Equity Fund VI with a $2 billion target. Read more

Marcelo Di Lorenzo and Rodrigo Galvão Form Atlântico Sul Capital Partners

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(Press Release) We are very pleased to announce the formation of Atlântico Sul Capital Partners, a new Brazilian private equity manager, established by 3i Brazil former partners Marcelo Di Lorenzo and Rodrigo Galvão.

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BNDES Looks to PE Funds, Direct Investment Amid Growth-Company Rush

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(LatinFinance) Brazil’s development bank will invest in up to 12 private equity companies and support Bovespa Mas trading, in a drive to facilitate capital markets access for the country’s smaller firms. Read more

Ideiasnet Announces the Sale of iMusica to Claro

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(Press Release) Ideiasnet announced the sale of its stake in iMusica, a Brazil-based digital content distributor, to Claro S.A. Read more

H.I.G. Capital Invests in a Leading Managed Print Services Company in Rio de Janeiro

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(Businesswire) H.I.G. Capital, a leading global private investment firm, announced that its Brazilian affiliate has made a significant investment in Office Total, a leading Brazilian Managed Print Services provider. Read more

Northgate Capital Acquires a Minority Stake in HDS

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(Press Release) Northgate Capital, the global private equity fund manager, has acquired a minority stake in Health Digital Systems, S.A.P.I. de C.V. through a transaction that allows Northgate to inject capital up to US$25m. Read more