By Staff Writer
Private Equity International
July/August – The “B” of the BRIC acronym is starting to live up to the hype in terms of private equity opportunities.
Among the deals to be struck in the first half of the year, London-headquartered Apax Partners made its Brazilian debut with a $1 billion investment for a 54 percent stake in Tivit, an integrated IT company.
While much of the recent deal flow has targeted Brazilian businesses, some managers have broadened their gaze to other countries in the region.
Earlier this year, Advent International closed its fifth Latin America-focused fund on $1.65 billion, making it the largest private equity fund ever to target the region.
“We will continue to invest primarily in … Brazil, Mexico and Argentina, but are looking to broaden our geographic focus to include other markets such as Uruguay, Chile, Peru, Colombia and the Caribbean,” Ernest Bachrach, managing partner and co-head of Latin America for Advent International, told the Latin American Venture Capital Association in May.
Some investors see Brazil as being an overheated market, too crowded and becoming too expensive, although “there are still plenty of growth opportunities, and it’s still a relatively non-penetrated market”, according to Cate Ambrose, president and executive director of the Latin American Venture Capital Association.
“There are a group of global investors who look at Brazil as the market in Latin America and ignore the rest of the region,” Ambrose says. “That’s something that has changed in 2010.”
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