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South America-Focused Funds in Market

by Nicholas Jelfs

  • 11 Apr 2011
  • PE

Preqin’s Funds in Market product currently holds information on 74 private equity funds in market with a preference for investing in South America. Collectively, these funds are targeting an aggregate USD 34.9 billion to invest in private equity opportunities in the region, either exclusively or as part of a more general geographical focus. Of these funds, 25 have had at least one interim close, collecting just over USD 2.6 billion to date in capital commitments.

Venture capital funds are the most abundant type currently in market, with 19 vehicles collectively targeting 14% (USD 4.8 billion) of the total capital being sought. Funds of funds with a preference for South American investments are seeking the most capital, with such vehicles aiming to raise USD 6.8 billion, 20% of the aggregate target. Infrastructure and natural resources funds together hold a significant proportion of funds currently in market, both in terms of the number of funds and the amount of target capital; 10 infrastructure funds and 8 natural resources funds are collectively seeking USD 8.5 billion.

With respect to fund manager location, 50% of GP’s with funds in market that have a significant focus on investment in South America are based in the US and Canada. A further 30% of fund managers are located within South America and 16 of these fund managers are based in Brazil. The remaining GP’s are located across Europe and the Asia and Rest of World region.

The largest fund focusing purely on investment in South America is the Gávea Investment Fund IV. The fund is a hybrid vehicle focusing on long-term investment positions, primarily in Brazil, utilizing private equity, PIPEs and similar instruments to gain direct and indirect exposure to desired asset classes. The vehicle launched in July 2010 and is currently seeking to collect USD 1.5 billion in investor commitments

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