As of April 2013, 112 private equity fund managers are headquartered in the region of South America according to Preqin’s Fund Manager Profiles database. Collectively, these private equity firms have raised $23bn in aggregate capital over the last 10 years and have an estimated $11bn in available dry powder. Seventy-five of these firms are based in Brazil, 12 in Argentina, nine in Columbia, eight in Chile, seven in Peru and one in Uruguay. Brazil-based fund managers account for the largest proportion of private equity activity in the region, accounting for 70% of total funds raised in the last decade and 68% of estimated dry powder; of these fund managers, 49 are located in Sao Paolo.
Forty-seven South America-based private equity firms consider a buyout strategy as part of their overall investment criteria, while 53 firms consider venture capital investments. The top five South America-based private equity fund managers by total capital raised in the last 10 years are Gavea Investmentos, Southern Cross Group, Patria Investimentos, Vinci Capital Partners and BTG Pactual.
Gavea Investimentos has offices in Rio de Janeiro and Sao Paulo. The firm has a growth investment strategy and primarily invests in Brazil with a diversified industry focus. It has raised $4.1bn in capital commitments over the last decade and has an estimated $1bn in dry powder.
Southern Cross Group focuses on buyout investments across a diverse range of industries throughout Latin America. The firm has raised $2.6bn in capital over the last 10 years and has an estimated $1.3bn in dry powder. Patria Investimentos, a firm operating in Brazil and London, also has a buyout strategy with preference for consumer, healthcare, education and technology industries. The firm has raised $2.3bn in capital over the last 10 years and has an estimated $1.3bn in dry powder.