LAVCA | The Association for Private Capital Investment in Latin America
  • About
    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact
  • Members
    • Membership Benefits
    • Current Members
    • Member Access
  • Education & Programs
    • About
    • LAVCA Week
    • Calendar & Past Programs
    • LAVCA Education
  • Research & Directories
    • LAVCA Research
    • Industry data
    • LP Survey
    • Directories
  • ESG & Impact
    • Deal Book
    • LAVCA ESG Deal Awards
    • Impact Report
    • ESG Guidelines
  • Articles
    • Featured Articles
    • Industry News
  • VC
  • Member Login
  • Member Access

LAVCA | The Association for Private Capital Investment in Latin America

A non-profit member organization

  • About
    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact
  • Members
    • Membership Benefits
    • Current Members
    • Member Access
  • Education & Programs
    • About
    • LAVCA Week
    • Calendar & Past Programs
    • LAVCA Education
  • Research & Directories
    • LAVCA Research
    • Industry data
    • LP Survey
    • Directories
  • ESG & Impact
    • Deal Book
    • LAVCA ESG Deal Awards
    • Impact Report
    • ESG Guidelines
  • Articles
    • Featured Articles
    • Industry News
  • VC

Banco Modal to Start $1 Billion Private Energy Fund

16 April 2010

(Bloomberg) April 16, 2010 – Banco Modal SA, the Brazilian bank that helps finance mid-cap companies, will create a 1.8 billion reais ($1.02 billion) private equity fund to invest in energy assets.

The fund may start in the next three months and will be open to local and international investors, said Eduardo de Abreu Borges, a managing director at the bank, in an interview at Bloomberg’s offices in New York. Borges expects consolidation in the electricity industry in Brazil as distributors buy stakes in generators to compete in the spot market.

Private equity funds may raise three times the $5 billion they lured last year as the global economy recovers, Sidney Chameh, president of the nation’s private equity association, said in an April 13 interview. Brazilian pension funds are seeking to increase investments in private equity to diversify their holdings and maintain returns, Borges said.

“Brazilian pension funds have discovered that they can no longer thrive on receiving interest rates from debt instruments only,” Borges said. “The pension funds are at last focusing in risk opportunities.”

Supply Chain Company

The new fund will follow the model of the bank’s 1.3 billion reais FIP Coliseu fund, said Borges. Coliseu and Cia. Energetica de Minas Gerais, Brazil’s second-largest electricity generator and distributor, paid 2.15 billion reais for a 66 percent stake at Terna Participacoes SA in November.

Banco Modal also expects to make the first acquisition with its 500 million reais FIP Oil & Gas fund by the end of this month, said Borges, who oversees private equity, investment banking and the commercial department at Banco Modal.

The Oil & Gas fund “is the first to target the supply chain of Petrobras,” said Borges, referring to Petroleo Brasileiro SA, Brazil’s state-controlled oil producer.

“Historically, those companies are very small ones and they cannot take up the type of demand that this new pre-salt frontier is going to demand,” Borges said.

Buyout firms may lure $10 billion to $15 billion from January through the first half of 2011 for private equity investments, mostly in electric utilities, airports, water sanitation and urban transportation, said Chameh at a conference in Rio de Janeiro. 

Cemig fell 1.6 percent, to 29.49 reais in the Sao Paulo trade at 1:01 p.m. New York time. Petrobras fell 2 percent to 32.92 reais, while the Bovespa benchmark index dropped 1.6 percent, to 69,385.18.

By Fabiola Moura

Visit the Bloomberg News site here.

Banco Modal to Start $1 Billion Private Energy Fund was last modified: April 29th, 2010 by Editor
BrazilPrivate Equity
0
Facebook Twitter Google +

Leave a Comment

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tech Growth Membership

The 2023 LAVCA Startup Founders Survey is made possible thanks to the support of LAVCA’s Tech Growth Membership, a group of leading tech companies and investors advancing the tech ecosystem in Latin America including AWS, Mercado Libre, Microsoft, Qualcomm Ventures, SVB, Riverwood Capital, Google and Movile.

VC Partner Events

    Tweets

    Missing consumer key - please check your settings in admin > Settings > Twitter Feed Auth

    Submit VC News

    Have private equity or venture capital related news that you would like to share? Submit your press releases and news to [email protected].

    VC Industry News

    • Valor Capital Group and NFX Co-Lead USD9.3m Series A for Brazil’s Praso

      30 August 2023
    • EQT Growth Leads USD85m Series F for Brazil’s Gympass at USD2.2b Valuation

      23 August 2023
    • Tiger Global Leads USD61m Series B for Brazil’s Nomad 

      22 August 2023
    • NASZCA and IDB Invest Lead USD15.5m Series A for Mexico’s Wonder Brands

      17 August 2023
    • Victory Park Capital Provides USD100m Credit Facility for Mexico’s Klar

      15 August 2023
    • General Catalyst Lead USD45m Series B for Brazil’s Tractian

      7 August 2023
    • General Catalyst Leads USD45m Round for Brazil’s Tractian

      7 August 2023
    • ADQ Provides USD100m In Convertible Debt to Brazil’s Loft

      2 August 2023
    • Danish SDG Investment Fund Leads USD31.5m Series C for Mexico’s Bright  

      27 July 2023
    • Colombia’s Foodology Raises USD17m from Andreessen Horowitz, 30N Ventures and Chimera

      19 July 2023

    About LAVCA

     

    LAVCA is the Association for Private Capital Investment in Latin America, a not-for-profit membership organization dedicated to supporting the growth of private capital in Latin America and the Caribbean through research, education, networking and advocacy.

    LAVCA Office

        New York City:
        589 8th Ave, 18th Floor
        New York, NY 10018

    Explore LAVCA.org

    • About LAVCA
    • Board, Team, & Advisors
    • Media
    • Contact Us
    • Membership Benefits
    • Members Only Access
    • Education and Programs
    • Research
    • Policy
    • LAVCA VC
    • Contact Us

    @2020 - LAVCA. All Rights Reserved.


    Back To Top