Data & Intelligence
Latin America Data Insight (Q1 2017)
Posted On: 07 Jun 2017
Latin America’s private capital landscape has been one of stark contrasts in recent quarters. With fund managers deploying US$1.2 billion across 34 deals, disclosed capital invested in Q1 2017 was Latin America’s second highest Q1 total since EMPEA began tracking investments in 2008. GPs took advantage of special opportunities offered by distressed energy companies, as seen in Actis’s acquisition of SunEdison’s renewable energy assets in Latin America and Southern Cross Group’s acquisition of the Chile distribution subsidiary of Brazilian energy company Petrobras. In contrast, with the region still at a low point in the fundraising cycle following the 2014 peak, GPs raised just US$158 million—the lowest Q1 total on record. Nevertheless, per EMPEA’s 2017 Global Limited Partners Survey, Latin America is one of the most attractive regions for investors: 33% of LPs plan to begin or increase allocations to Latin America (excl. Brazil) in the next two years. Although political uncertainty remains a factor, attractive valuations, and improving currency and macro conditions will likely continue to lift investors’ perception of the region and may boost private capital activity levels in Latin America in the coming quarters.
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Rashad Kaldany | Executive Vice-President and Growth Markets, CDPQ
David Rubenstein | Co-Founder and Managing Director, The Carlyle Group