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Latin America-Focused Private Equity Funds in Market – April 2013

by Stuart Hunter

  • 08 Apr 2013
  • PE

Currently, there are 70 Latin America-focused funds in market collectively seeking $19.2bn in capital commitments according to Preqin’s Funds in Market database. Of these funds, 31 have already held at least one interim close, raising an aggregate $7.1bn so far.

Infrastructure and real estate vehicles account for the highest proportion of the total capital sought by Latin America-focused funds in market. Fourteen Latin America-focused infrastructure and real estate funds are targeting an aggregate $9.7bn, which represents just over half of the total capital sought by funds focusing on the region. Growth and buyout funds represent a significant proportion of the total capital sought by Latin America-focused vehicles in market, with 13 growth funds and six buyout funds accounting for 15.8% and 8.7%, respectively.

Of the 70 Latin-America focused funds in market, the 28 are managed by firms based in Brazil; the aggregate $9.4bn these vehicles are targeting accounts for 49% of the total amount of capital being targeted by all Latin America-focused funds in market. Nineteen Latin America-focused funds in market are managed by US-based firms and are looking to raise an aggregate $4.2bn. A further five Latin America-focused vehicles are managed Columbia-based firms and are targeting a total of $532mn to invest within the region.

The average size of the 70 Latin America-focused funds in market is $274mn. Interestingly the 14 infrastructure funds in market have an average size of $427mn, while the 14 real estate funds have an average size of $265mn.

The largest Latin America-focused fund in market, BTG Pactual Brazil Infrastructure Fund II, aims to raise $1.5bn in capital commitments. This infrastructure fund, managed by BTG Pactual, focuses specifically on the development of infrastructure in the energy, transportation and utilities sectors in Brazil and throughout South America. BTG Pactual is headquartered in Brazil.

The two second largest Latin America-focused funds in market, Astra Infrastructure Fund and Astra Natural Resources Fund, are both managed by Astra Investimentos and both are looking to raise £1bn in capital commitments. Astra Infrastructure Fund seeks to invest in Brazilian infrastructure projects, holding a preference for the energy and utilities sectors, while the Astra Natural Resources Fund targets investment opportunities in the metals, mining, timber, and water industries within Brazil.

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