2019 LAVCA Industry Data and Analysis summarizes the results of the Association for Private Capital Investment in Latin America’s eleventh annual survey of over 400 fund management firms active in Latin America and the Caribbean.
Private Equity (PE) and Venture Capital (VC) funds targeting Latin America raised US$6.7b through 52 partial or final closings in 2018, a 55% increase over the US$4.3b raised in 2017. During this period, deal count reached a record-breaking 610 transactions, driven by increased activity among VC firms.
Two themes dominated the region’s investment activity in 2018: investments in energy and infrastructure-related sectors, and those targeting the enormous information technology opportunity in Latin America. Linking these themes were deals in technology infrastructure, such as fiber optic cable networks and delivery/logistics infrastructure.
Brazil remained the largest market for investment, followed by Mexico. Investments in Argentina increased year-on-year in 2018, despite unforeseen macro instability and an inflationary crisis mid-year.
Venture capital investment activity had its second consecutive record-breaking year in Latin America with global, regional, and domestic investors backing a growing universe of tech startups.