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

Private Equity and Venture Capital Firms Raise over US$10b to Achieve New Record for Latin America Dedicated Funds

February 26, 2015

Contact:
Caitlin Mitchell, LAVCA
[email protected]
1.646.315.6737

Private Equity and Venture Capital Firms Raise over US$10b to Achieve New Record for Latin America Dedicated Funds
Year-on-Year Investments in Mexico Double

New York, February 26, 2015 – Capital committed to Latin America dedicated private equity and venture capital funds reached US$10.39b in 2014, exceeding the previous record of US$10.27b in 2011, according to data released today by the Latin American Private Equity and Venture Capital Association (LAVCA). In 2011, there were 35 fund closings as compared to 56 in 2014, and the five largest funds accounted for 81% of the total capital committed that year, as compared to only 58% in 2014.

“The uptick in 2014 fundraising was not only a return of the larger pan-regional and Brazilian players to the market, but was notably less concentrated than in 2011,” said Cate Ambrose, President of LAVCA. “What this tells us is that the universe of managers raising capital for Latin America continues to expand and that despite regional growth projections of under 2% for 2015, LP demand for exposure to the region remains strong.”

Brazil-focused funds captured US$5.56b through 23 partial or final closings in 2014, representing more than half of the regional total. Robust fundraising for Mexico-specific vehicles was driven by six new funds backed by the local pension funds, totaling US$1.33b, a 27% increase from the previous year.

In 2014 private equity and venture capital firms invested a total of US$7.87b in Latin America through 306 transactions, an 11% decrease in amount invested and a 31% increase in number of deals from the previous year. The overall increase in number of transactions was driven by a significant increase in venture capital activity.

Venture capital investors deployed US$525.6m through 186 transactions in Latin America during 2014. Early stage investments have been growing consistently since 2010, when just US$63m was deployed in venture deals, and activity in 2014 reflected an increase of 24% in capital invested and 56% in number of deals as compared to 2013.

Driven by increasing venture capital activity, Information Technology (IT) was the top sector in terms of number of deals and the second most important by amount invested. With US$1.14b, IT companies captured 14.5% of the investment totals through 154 deals. Healthcare represented US$798m across 21 transactions (10% of the total invested). Consumer/retail accounted for 23 transactions (US$502m) and continued to be relevant for middle-market investors, surpassed only by technology.

Eight large deals related to the generation and distribution of power totaling an aggregate US$1.64b made energy the top sector in terms of capital invested in 2014.

Mexico was the second most active market with US$1.31b being deployed, representing a 102% increase in dollar terms from 2013. Propelled by expectations of opportunities related to the country’s ambitious energy reform, two large oil and gas deals accounted for more than half the total amount invested.

“It is expected that the Mexican energy reform, along with the increasing demand for oil and gas infrastructure in Brazil and the Andean countries will continue to drive investments in this sector during 2015,” continued Ambrose.

In 2014, a total of US$4.64b in proceeds was generated through 60 partial or full exits in Latin America, representing a 24% increase in proceeds over the previous year. Sale to strategic acquirers was the dominant exit route in 2014, with 46 exits generating US$3.75b. International strategic acquirers were involved in 15 of these sales, with Latin American groups making up the balance.

Additional findings include:

  • The number of investments with managers taking minority stakes increased to 89% of total deals in 2014, up from 85% in 2013, and 80% in 2012.
  • Brazil was the largest market for PE/VC deals with US$4.57b in investments through 141 transactions (58% of invested capital and 46% of deals).
  • Equity invested in early stage deals more than doubled as compared to 2013, increasing to US$372m from US$146m, driven by larger and later stage rounds of investment.
  • Behind Brazil, Colombia was the second largest market for exits in terms of proceeds, with ten transactions generating US$1.52b in liquidity, a more than tenfold increase in proceeds compared to 2013.

The full report will be made available free to LAVCA Members in March. At that time, non-members will be able to purchase the report here.

###
2015 LAVCA Industry Data Methodology

The 2015 LAVCA Industry Data & Analysis provides insight into the fundraising, investment, and exit activity among private equity funds investing in the Latin American region. LAVCA Industry Data is based on a confidential survey of fund managers and secondary sources, creating the first reliable source of data on private equity and venture capital in Latin America. LAVCA has conducted the Fund Manager Survey on PE/VC activity in Latin America since 2008. In this edition of the survey, LAVCA reached out to more than 250 fund management firms active in Latin America and the Caribbean. LAVCA collects most of the information directly from fund managers and amounts have been confirmed whenever possible through information provided by the fund managers themselves. This year, 92% of fundraising, investment, and exit transactions came from primary sources. Reported fundraising totals reflect only official closes (first, second, and/or final) confirmed by the fund managers or, if not obtained directly, reported in trusted public sources. Capital commitments accruing prior to or between official closes are not included. Captive funds or funds investing directly from its own internal sources (for instance, the balance sheet) are not included in this study. Infrastructure funds managed by private equity firms and making private equity-style investments are included in the analysis (e.g., equity investments in infrastructure-related industries). Infrastructure investments that fit the conventional model (e.g., Greenfield projects and/or project finance) are not included.

About LAVCA

The Latin American Private Equity & Venture Capital Association (LAVCA) is a not-for-profit membership organization dedicated to supporting the growth of private equity and venture capital in Latin America. LAVCA’s membership is comprised of over 160 firms, from leading global investment firms active in the region to local fund managers from Mexico to Argentina. Member firms control assets in excess of US$60 billion, directed at capitalizing and growing Latin American businesses. For more information, visit www.lavca.org.

Private Equity and Venture Capital Firms Raise over US$10b to Achieve New Record for Latin America Dedicated Funds was last modified: July 20th, 2016 by Editor
0
Facebook Twitter Google +

Sign up for LAVCA’s bi-weekly Latin American Private Capital Update and the LatAm Venture Bulletin, produced specifically for venture investors, entrepreneurs, and technology startups in the early stage ecosystem.






Which LAVCA Newsletter would you like to receive?

VC Partner Events

  • VC Trends in Latin America: H1 2022

    August 23, 2022–August 23, 2022
  • LAVCA Encontro Anual Brasil 2022

    August 30, 2022–August 30, 2022

Tweets

  • LAVCA tracked #privatecapital activity in Latin America and showed signs of resilience amidst rising risks from inf… https://t.co/PfVghlxvXn

    18-Aug-2022

    Reply Retweet Favorite
  • #LAVCAWeek2022 is taking place in person Oct. 11-14 in NYC! Speakers include: Tania Sztamfater Chocolat (… https://t.co/uNg10qSqwx

    09-Aug-2022

    Reply Retweet Favorite
  • Today's top takeaways from the #LatAmVentureBulletin: https://t.co/JY9CRvO0hW https://t.co/KUabMLOT2U

    05-Aug-2022

    Reply Retweet Favorite
  • Leading VCs and tech investors active in Brazil are invited to join LAVCA's #EncontroAnualBrasil. Program highlight… https://t.co/9vWiCTnyuh

    05-Aug-2022

    Reply Retweet Favorite
  • Registration for #LAVCAWeek2022 is now open for all qualified institutional investors LAVCA Members and non-members… https://t.co/iiv4YQSuUc

    03-Aug-2022

    Reply Retweet Favorite

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

  • Van Eck Associates Leads USD8m Seed Round for Brazil’s Investo

    August 15, 2022
  • IFC invests USD35m in Brazil’s Odata

    August 15, 2022
  • Iporanga and Parallax Lead USD15m Series A for Brazil’s Klavi

    August 11, 2022
  • Brazil’s ISA LAB Raises BRL60m Round from FIR Capital, Vox Capital, Kortex, Others

    August 9, 2022
  • Creation Investments Invests USD25m in Mexico’s DD360

    August 9, 2022
  • Tiger Global and Bain Capital Ventures Lead USD7m Seed Round for Mexico’s Miferia

    August 8, 2022
  • Goldman Sachs To Provide Up to USD150m Debt Facility for Mexico’s Clara

    August 8, 2022
  • Astella Reaches USD150m Final Close for Fifth Early-stage Brazil-focused Fund

    August 8, 2022
  • Portage Leads USD6.5m Seed Round for Mexico’s Kontempo

    August 4, 2022
  • Monashees and Andreessen Horowitz Lead USD10m Seed Round for NG.CAS

    August 2, 2022
  • Founders Fund Leads USD10m Round for Argentina’s Mudafy

    August 2, 2022
  • Kamaroopin Leads BRL170m Series D for Brazil’s Dr. Consulta

    August 1, 2022
  • Canary Leads USD6m Pre-Seed Round for Colombia’s Bia

    July 27, 2022
  • Swvl To Acquire Mexico’s VC-backed Urbvan for USD82m

    July 11, 2022
  • Tiger Global Leads USD15m Series A for Colombia’s treble.ai

    July 1, 2022
  • Goldman Sachs Asset Management Leads ~USD38m Series C for Brazil’s Conexa Saúde

    June 27, 2022
  • Vine Ventures Reaches USD140m Final Close for Seed-stage Venture Fund

    June 22, 2022
  • Ecuadorian Fintech Kushki Raises USD100m Series B+ at USD1.5b Valuation

    June 7, 2022
  • Vinci Partners Acquires USD20m Stake in Brazilian Credit Provider DMCard

    February 21, 2022
  • 8VC Leads ~USD35.4m Round for Brazilian Insurtech 180 Seguros (em português)

    February 2, 2022
  • Glade Brook Capital Leads USD125m Series C for Chilean Insurtech Betterfly

    February 2, 2022
  • SP Ventures and Acre.VC Lead USD10m Series A for Brazilian Carbon Trading Marketplace Moss (em português)

    January 31, 2022
  • Brazilian Healthtech Nilo Saúde Raises USD10m Series A from Canary, MAYA, SoftBank, GFC and Tau Ventures

    January 28, 2022
  • Valor Capital Group Leads ~USD16m Series A for Brazilian Agtech Agrolend (em português)

    January 23, 2022
  • DILA Capital and Kayyak Ventures Lead USD15m Series A for Mexican Financing Platform Fairplay

    January 18, 2022
  • Astella Investimentos Leads ~USD4.6m Seed Round for Brazilian Blockchain Trading Platform Gavea (em português)

    January 12, 2022
  • SoftBank Leads USD48m Series B for Colombian E-commerce Laika

    January 12, 2022
  • KASZEK Leads USD13.2m Round for Mexican Fantasy Sports Platform Draftea

    January 7, 2022
  • IDC Ventures Leads ~USD5m Series A for Brazilian Microcredit Platform SuperSim (em português)

    January 6, 2022
  • Mexican Verification Platform MetaMap Raises USD70m Series B

    January 5, 2022
  • DRADS Capital Leads USD7m Pre-Series A for Chilean Foodtech The Live Green Co. (en español)

    January 3, 2022
  • SoftBank Leads USD127m Round for Brazilian Healthcare Provider Alice

    December 21, 2021
  • DILA Capital and ALIVE Ventures Lead USD14m Series A for Edtech Slang

    December 20, 2021
  • Astella Investimentos and SoftBank Lead ~USD3m Seed Round for Brazilian Automation Platform BotCity (em português)

    December 20, 2021
  • GIC Leads USD80m Round for Colombian POS Lending Platform ADDI (em português)

    December 20, 2021
  • Yara Growth Ventures Leads USD30m Series C for Argentine Agtech Agrofy (em português)

    December 16, 2021
  • Tiger Global Leads USD60m Series B for Mexican Freight Platform Nowports

    December 16, 2021
  • SoftBank Leads ~USD120m Round for Brazilian Fintech OpenCo (em português)

    December 15, 2021
  • DN Capital Leads ~USD22.2m Series A+ for Brazilian Healthtech Sami

    December 14, 2021
  • Riverwood Capital Leads ~USD52m Series B for Brazilian Fiscal Management Platform Arquivei (em português)

    December 14, 2021
  • KASZEK Leads USD2.7m Seed Round for Peruvian Edtech Crack the Code

    December 13, 2021
  • GIC Leads ~USD32m Series C for Brazilian Delivery Platform Shopper (em português)

    December 13, 2021
  • Tiger Global Leads USD20.5m Round for Mexican Freight Platform Nuvocargo

    December 10, 2021
  • Advent International and SoftBank Lead USD60m Series B+ in E-Commerce Aggregator Merama

    December 9, 2021
  • Volpe Capital Leads ~USD5m Series A for Brazilian Corporate Governance Platform Atlas Governance

    December 8, 2021
  • Lachy Groom Leads USD14.8m Series A for Brazilian Fintech Stark Bank (em português)

    December 8, 2021
  • Prosus Ventures Leads USD60m Series B for Colombian Edtech Platzi

    December 6, 2021
  • KASZEK Leads USD10m Series A for Brazilian Workspace Marketplace Beer or Coffee (em português)

    November 30, 2021
  • Galapagos Capital Invests ~USD20m in Brazilian Cosmetics MedBeauty (em português)

    November 18, 2021
  • Oak HC Leads USD27m Series A for Mexican Payment Platform Aplazo

    November 15, 2021
  • Colombian E-commerce Fulfillment Platform Melonn Raises USD4.5 Seed Round

    November 3, 2021
  • DNA Capital, Temasek and Fit Participações Lead ~USD20m Round for Brazilian Healthtech Memed

    November 1, 2021
  • Astella Investimentos Leads ~USD5m Round for Brazilian Proptech Homelend (em português)

    October 28, 2021

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