Preqin’s Fund Manager Profiles currently tracks 59 Latin America-based private equity firms focused on providing targeted companies with growth financing as part of a wider investment strategy. These firms, which target unleveraged significant minority positions in profitable, maturing companies, have collectively raised just under $16bn in the last 10 years and have an estimated $6bn in dry powder.
Brazil has the largest base of fund managers considering growth private equity investments, with just over half of the 59 firms headquartered here. Mexico has the second largest, with nine private equity firms contributing to just over 10% of the total capital raised in the last 10 years. Thirty percent of private equity fund managers providing growth financing predominantly consist of firms based in Peru, Chile and Columbia, which have an estimated combined $1bn in uncalled capital.
The five largest Latin America-based fund managers that consider providing growth financing, by total capital raised over the last 10 years, are: Gávea Investimentos, Vinci Capital Partners, BTG Pactual, Nexxus Capital, and Nexus Group – Peru. The majority of these firms are based in Brazil with the exception of Nexxus Capital, which is headquartered in Mexico, and Nexus Group – Peru, located in Lima, Peru.
Gávea Investimentos has raised just over $4bn in capital commitments over the last 10 years, and focuses exclusively on opportunities in Brazil. The firm focuses predominantly on growth investments and has raised three funds of this type between 2003 and 2008. In recent years, the firm has chosen to widen its strategy by raising a balanced fund that utilizes a variety of private equity investment strategies including buyout, growth, distressed, PIPEs and venture capital. Vinci Capital Partners and BTG Pactual have raised approximately $2bn and $1.5bn respectively in capital commitments over the last decade, whilst Nexxus Capital and Nexus Group – Peru have garnered $1bn and $900mn respectively. Nexus Group – Peru focuses solely on investing in opportunities provided by the Peruvian macroeconomic landscape and makes both growth and buyout investments with a particular focus on the consumer discretionary sector.