Preqin’s Funds in Market product reveals there are currently 69 funds on the road that are primarily focused on the Latin American region, which are seeking an aggregate target capital of $29.7bn. Of these funds, 64% focus solely on investing across Latin America and the remainder focus on the region as part of a broader geographic focus. Growth funds are seeking the largest amount of capital, accounting for 25% of the aggregate capital being sought ($7.3bn). Infrastructure and Natural Resources are the next most significant fund types in the Latin America-focused market, seeking $6.8bn and $3.4bn of the total targeted capital respectively.
38% of Latin America-focused funds currently in market are managed by GPs located in the region, with 26 vehicles having Latin America-based fund managers. 17 of these fund managers are based in Brazil, targeting an aggregate $7.9bn in capital. The US contains the highest amount of fund managers, with a further 26 GPs based in the country alone.
The largest fund currently in market to incorporate Latin America as part of a wider geographic focus is the Actis Emerging Markets 4 fund. The vehicle is investing in South America, Central America, China and India, as well as Africa. The fund is seeking $3.5bn for investments in a range of sectors including consumer, healthcare and restaurants. The fund launched in May 2011 and is managed by Actis, who are based in London with a South American office in São Paulo.
The largest Latin America-focused fund to close so far in 2011 is the Gávea Investment Fund IV that closed on $1.8bn in June. The hybrid fund is focused on long-term investment positions, primarily in Brazil, utilising private equity, PIPEs and similar instruments to gain direct and indirect exposure to desired asset classes.