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

Emerging Markets Fears Haven’t Dented PE in Latin America

10 September 2013

(WSJ) Investors may be souring on private equity in Brazil, but the country and surrounding region continue to attract private equity dollars. Private equity and venture capital investment in Latin America expanded by all measures in the first half of 2013, with the region picking up more fundraising dollars, investments, and exits than in the same period in the previous year, according to data from the Latin American Private Equity and Venture Capital Association released last week.

Overall, investors in Latin American private equity and venture capital funds raised a total of $3.8 billion, in 36 partially or fully closed funds. That figure is up from $1.89 billion in 10 final or partial closings during the same period a year earlier.

At this rate, Latin American funds may be able to exceed the $5.6 billion that was raised during 2012, but it seems unlikely they will match the $10.3 billion that poured into coffers during 2011. On the deal side, firms committed $2.9 billion, up 5% from the previous year, to 108 deals across the region, according to LAVCA.

The investments in private equity belie a broader flight from public equities in emerging markets as the Fed moves to decelerate its quantitative easing program. And while investor sentiment in both private equity and among public investors is shifting away from Brazil and toward Mexico, Brazil continues to be the dominant country in the region.

“It’s been really entertaining for us to watch the Brazil vs. Mexico story play out in the media. When the growth in Latin America stared accelerating in 2007, Mexico was the last country everyone was looking at,” said Cate Ambrose, president and executive director of LAVCA. That growth has now extended to Mexico thanks to a number of reforms and a resurgent American economy.

While many industry observers have noted that investors in private equity funds are increasingly skeptical of Brazil, it will take time before that wariness manifests itself in fundraising and deal numbers, they said.

“The underlying reality in the private equity industry is that these are not capital flows that get turned around overnight,” said one industry observer.

Emerging Markets Fears Haven’t Dented PE in Latin America was last modified: September 10th, 2013 by Editor
BrazilLAVCAMexicoPrivate EquityVenture Capital
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