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Latin America

Please find below a sampling of some of the latest EMPEA statistics, programs and content covering information on Latin America. For a more comprehensive listing, please search "Latin America" and customizable criteria in Advanced SearchScroll down for additional data and resources.


Global Limited Partners Survey 2014

According to EMPEA's most recent Global Limited Partners Survey, limited partners view Latin America (excluding Brazil) as the most attractive destination for GP invesetment over the next 12 months. For the second consecutive year, markets outside the BRICs were identified by LPs as the most attractive destinations for PE investment, with Latin America (ex. Brazil) regaining the top spot after being displaced in 2013 by Sub-Saharan Africa, which ranked third this year behind Southeast Asia. Latin America (ex. Brazil) funds also have the second highest return expectations among limited partners, with 56% of survey respondents expecting net returns of 16% or higher for 2013-vintage vehicles.

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Featured Data

Brazil Data Insight (Q1 2014)

Private equity in Brazil experienced a slowdown in investment activity in the first quarter of 2014, with only seven deals completed in the country compared with 13 deals in Q1 2013. Even with the decline in deals, however, capital invested in Q1 2014 stood at US$135 million, down only marginally from the US$154 million deployed in Q1 2013. Moreover, funds dedicated to Brazil raised US$206 million, a significant jump from the US$86 million raised in Q1 2013.  Source: EMPEA, May 2014

Featured Report 

Private Credit Solutions Mezzanine Financing in Emerging Markets

The Evolution of Mezzanine Financing in Latin America
Rick Frank, Darby Private Equity
Mezzanine investing across Latin America has had a relatively short history with a limited number of participants. Darby traces its involvement in this market back to 1999, with the organziation of one of the first U.S. dollar-denominated pan-Latin American mezzanine funds. Source: EMPEA, May 2014


 

Latin America Fundraising and Investment

 

Source: EMPEA
  Fundraising (US$m) Investment (US$m)

Q1 2014

415

615

2013

3,2486

5,246

2012

4,211

5,486

2011

8,890

3,905

2010

6,534

6,613

2009

2,613

2,693

2008

4,874

2,960


 

Additional Resources

Inside Perspectives: An Interview with Piero Minardi of Gávea Investimentos
Piero Minardi, a Partner in the Illiquid Strategies Group at Gávea Investimentos and the newest member of EMPEA’s Board of Directors, shares his perspectives on the private equity landscape in Brazil. As one of the self-called “dinosaurs” of the industry, he addresses the charge that the country is becoming overheated. Gávea Investimentos is an independent Brazilian asset manager with approximately US$6.5 billion in assets under management. Source: EMPEA, October 2012

Building Vital Partnerships: How do private equity investors create value?
A joint study of private equity exits in Latin Amercia by EMPEA and EY. Our second annual study, looking at how PE investors create value in Latin American businesses, extends our research into PE’s transformational role in Latin America’s continued economic development. The results of this year’s study confirm our initial findings — PE firms are focused on growth and hands-on partnerships with entrepreneurs to transform companies into market leaders. Source: EMPEA and EY, May 2013

EMPEA Insight: Mexico
Mexico’s private equity fund managers are in high spirits. Although the industry is small and relatively nascent, local GPs contend that Mexico holds strong prospects for high returns. Perhaps most importantly, new regulations are having the desired effect of prompting local public pension funds to begin investing in private equity. As local investors increase their exposure to the asset class, a growing set of international LPs are expected to follow. Source: EMPEA, February 2012

Dynamic Growth: Value Creation in Latin America
To uncover how value creation is achieved in the emerging markets, Ernst & Young and EMPEA teamed to produce this emerging markets edition of Ernst & Young’s annual “How do private equity investors create value?” study, looking specifically at Brazil and Latin America. The study revealed that private equity in the rest of the world is in fact evolving to more closely resemble the model in the emerging markets. Source: EMPEA and Ernst & Young, May 2012

Investment Spotlight: Mexico
This EMPEA Professional Development Webcast shines a spotlight on the Mexico private equity climate and 2012 outlook. Our panel of industry experts will discuss the state of the market and the impact of the U.S. economic downturn on the region; the fundraising climate and role of local capital and Certificado de Capital de Desarollos (CKDs) as an evolving investment structure; and the opportunities and challenges of portfolio management, including sourcing deals, creating value and realizing exits. Source: EMPEA Professional Development Webcast, February 2012

Impact Case Study: Genomma Lab (Mexico)
In 2004, Genomma Lab, a Mexico-based developer of pharmaceuticals and consumer products, was in search of capital to support its growth. Genomma Lab forged a relationship with private equity fund manager Nexxus Capital, which invested nearly US$18 million in the company. During its partnership with Nexxus Capital, Genomma Lab completed more than 20 acquisitions, expanding into 12 countries and achieving market share leadership in many of its target product categories.  Source: EMPEA 2012

EMPEA Insight: Local Pension Capital in Latin America
Across the emerging markets, regulatory changes are gradually enabling domestic institutional investors—particularly pension funds—to commit capital to private equity. Through market profiles of Brazil, Colombia, Peru, Mexico and Chile, this report examines local pension fund participation in the asset class in Latin America, both to provide a guide to where potential pools of capital reside for GPs, and to demonstrate emerging models for greater domestic institutional investor involvement.  Source: EMPEA, July 2011