Brazil Makes Gains in PE, VC
Chile and Brazil set the pace for LatAm private equity and venture capital, says the Latin American Venture Capital Association (LAVCA) in a new ranking of the investment environment. Brazil this year jumped 10 points closing in on Chile. The LAVCA Scorecard ranks 13 countries on tax treatment, minority shareholder rights, capital markets development, bankruptcy regulation and nine other indicators affecting VC and PE. “Our 3rd Annual Scorecard shows momentum across the region,” says LAVCA chairman Eduardo Elejaldo, founding partner of Latin America enterprise fund managers. “It also shows that much room remains to improve local investment frameworks,” he adds. Brazil’s sharp rise reflects a year of buoyant capital markets and local pension fund PE/VC activity. LAVCA also notes firm gains in a new category, entrepreneurship, as well as dramatic improvements in Colombia and Peru. “Latin American economies and exchanges continue to perform well, and private equity and venture capital investment in the region has increased seven-fold since 2005,” says LAVCA. Behind Chile and Brazil, the following LatAm nations are ranked, in this order: Trinidad & Tobago, Mexico, Uruguay, Colombia, Costa Rica, Ecuador, Panama, Argentina, Peru and El Salvador.