LAVCA VC
  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • LAVCA Gender Diversity
  • Engage
    • VC Council
    • VC Members
  • LAVCA
  • Member Login
  • Member Access

LAVCA VC

  • News Feed
  • VC Data
  • Directories
  • Features
  • Tech Growth Coalition
  • LAVCA Gender Diversity
  • Engage
    • VC Council
    • VC Members
  • LAVCA

Gávea and Goldman Sachs create company to invest in cellphone towers

26 February 2013

(Valor) Gávea Investimentos, the asset-management firm founded by former central banker Arminio Fraga, joined Goldman Sachs to invest in the market of mobile-phone towers. Named Cell Site Solutions (CSS), the company is expected to get up to $300 million in investments, half from each partner, Valor has learned.

The new company will be led by Raymond Ward, executive who was CEO of American Tower, one of the largest companies in this market operating in Brazil. Gávea and Goldman declined to comment.

Rendering services to phone carriers has become a big market for private-equity firms. With the necessary investments to fulfill coverage goals for 3G and 4G technologies, phone companies have been opting to sell part of their tower assets and lease them back.

Brazil now has approximately 60,000 cellphone towers. It is estimated that this number will triple with the arrival of 4G technology. Only 15% of wireless sites (towers and antennas) in Brazil are owned by third-parties, compared to about 40% in the US. Looking to that potential, several funds created companies to acquire this infrastructure.

TorreSur, owned by Providence, an American company, was one of the first to get into the market and has already invested R$1.4 billion in the purchase of 2,600 towers. Last year, GP Investments, together with bank Bradesco, invested R$503 million in BR Towers, whose first deal was the acquisition of nearly 2,000 towers from Vivo, the largest cellphone carrier in Brazil, owned by Telefónica. At the end of 2012, P2 Brasil, an infrastructure fund managed by asset manager Pátria and engineering group Promon announced the creation of Highline, with a R$300 million investment.

Along with the purchase of existing structures, these companies intend to invest in the construction of new towers, whose individual cost varies between R$150,000 and R$250,000, plus the rent of the place where the antennas are installed.

Cell Site Solutions’ investment marks the return of Goldman Sachs to the Brazilian private-equity market. The American bank’s latest forays in Brazil were in 2007, with the purchase of sugar and ethanol company Santelisa Vale, sold two years later to France’s Louis Dreyfus Commodities, and in BRA Linhas Aéreas, airline that filed for bankruptcy protection.

Gávea is likely to invest in CSS money from the latest fund it created, in 2011, a $1.9 billion portfolio that is the largest-ever focused on acquisitions in the country.

 

Gávea and Goldman Sachs create company to invest in cellphone towers was last modified: April 22nd, 2013 by Editor
BrazilCell Site SolutionsGavea InvestimentosGoldman SachsMobileTelecommunications
0
Facebook Twitter Google +

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