Private Equity Fundraising in South America

by Kamarl Simpson

  • 06 Dec 2010
  • PE

Preqin data reveals that there are 67 South American-focused funds currently on the road seeking aggregate USD 28.7 billion in commitments. 40% of these funds have already had at least one interim close, having raised USD 3.2 billion in total. Vehicles targeting a diversified range of industries are the most numerous type of fund accounting for 16 out of 67 funds on the road, targeting a total of USD 9.2 billion.

The largest fund currently in market that intends to invest solely in South America is TRG Latin America Private Equity Fund. The distressed debt fund aiming to raise USD 300 million is the first private equity fund from The Rohatyn Group.

A quarter (17) of South American-focused funds currently being raised are intending to invest solely in Brazil and are targeting approximately USD 7.7 billion in capital commitments.  In fact, 30 private equity funds currently fundraising intend to invest a proportion of their capital in Brazil. Columbia is also garnering significant interest with four Columbia-specific funds raising just over USD 1 billion and another eight funds intending to devote a proportion of funds raised to investments in Columbia.

Data from Preqin’s Fund in Market product reveals that US-based fund managers are responsible for raising the majority of funds which primarily focus on South America. At present, 37 of the 67 South American-focused private equity funds currently raising are managed by US-based fund managers and are targeting an aggregate of USD 18.4 billion in capital commitments. In comparison, 20 funds focusing on the region are managed by South American-based fund managers and together they are targeting a total of USD 1.4 billion. Brazil continues to be the most popular South American country in terms of its ability to attract fund managers, with 12 firms based in the country.

For more information on private equity fundraising please see Preqin's Funds in Market product.

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