South America-Based Private Equity Firms

by Kamarl Simpson

  • 25 May 2011
  • PE

Preqin’s Fund Manager Profiles product currently holds information on 57 private equity firms that are based in South America. Over the past 10 years, these firms have collectively raised USD 14.6 billion in capital commitments and have an estimated USD 5.4 billion remaining in dry powder. Brazil-based GP Investments has raised the most capital out of the South America-based firms across the period, with over USD 2.7 billion raised through buyout funds and one venture fund focused on investments within the region.

Of these 57 firms, 33 are based in Brazil and account for almost 70% of the total capital raised over the last decade. A further seven firms are based in Argentina and six in Columbia, accounting for 18% and 3% of the capital raised by South America-based private equity firms over the past 10 years respectively. All of these firms target investments solely within the region of South America with the exception of four firms that also source investment opportunities in Central America. In terms of main investment type, 35% of the firms adopt venture capital as their principal strategy, with a further 25% focusing on buyout opportunities, 18% have a balanced approach to private equity investing. The remainder focus on other investment strategies such as mezzanine and distressed opportunities.

Besides GP Investments, there are two other South America-based private equity firms that have raised over USD 2 billion in the last decade; Argentina-based Southern Cross Group having raised just over USD 2.6 billion for buyout investing, and Gávea Investimentos having raised almost USD 2.3 billion for growth opportunities predominantly in Brazil.

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