LAVCA Hosts Policy Luncheon with Colombian Superintendencia Financiera de Colombia

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Download LAVCA Presentation to Colombian Superintendencia Financiera de Colombia

Authors:
LAVCA & Contributing Council Members

Description

LAVCA held a “Regulatory Luncheon” with the Superintendencia Financiera de Colombia in August 2015, the URF (Unidad de Regulacion Financiera) and ColCapital (local PE/VC Association) to address the PE/VC regulatory issues in that market. As a note, Colombia was downgraded on the indicator “Laws on PE/VC Fund Formation.” The chief concerns LAVCA expressed to Colombian regulators were in reference to the following norms. Read more

Jaguar Growth Partners Opens New Office In Brazil

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(MarketWatch) Jaguar Growth Partners, a private equity firm focused exclusively on real assets in growth markets globally, is pleased to announce the opening of its office in Sao Paulo, Brazil. Jaguar Growth Investimentos do Brasil Ltda, will be headed by Christian Klotz and Ricardo Costa, two recent additions to the Firm’s growing team. The new office establishes Jaguar’s presence in Latin American with investment and asset management activities in Brazil and throughout the region. Read more

US$1.18m Raised by Private Equity Funds in Colombia (en español)

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(El Economista) The private equity industry has reached its 10 year mark in Colombia due to the support of 63 firms that have used private equity capital to fuel expansion, according to ColCapital and ProColombia. Read more

NorthGate Capital Completes a MXN$4b Offer for CKD Fund

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(Press Release) Northgate Capital, a global private equity and venture capital fund manager, successfully completed a $4 billion peso Quasi-Equity/Mezzanine CKD offer through the Mexican Stock Exchange. Banorte Ixe acted as Arranger and Joint-Bookrunner while Morgan Stanley acted as Joint-Bookrunner. Read more

Finnovista Raising US$15m to Invest in Technology

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(El Financiero) Accelerator Finnovista is working with investors and the government to create a private equity fund in Mexico for US$15m for disruptive fintech startups. Read more

LAVCA Comments on Mandatory Third Party Valuation to Colombian Superintendencia Financiera de Colombia

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Download LAVCA Letter to Colombian SFC

Author:
LAVCA & Contributing Council Members

Description

At the request of ColCapital and as a follow-on to topics discussed in the LAVCA Colombia public policy meeting held in November 2014, LAVCA produced a letter and review of third-party valuation practices to the Colombian Superintendency explaining why mandatory third party valuations are adverse to the growth of the private equity industry. LAVCA staff led this project and was able to produce this with input from Advisors and Board Members. Read more

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

LVMH, Catterton & Groupe Arnault Partner PE firm L Catterton

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(PRNewswire) Catterton will merge with LVMH’s private equity and real estate investment arms, giving birth to a $12bn global PE & RE investment firm. This new firm is planning to establish local presence in LatAm. 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.