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South America–Focused Private Equity Funds in Market – December 2012

by Luke Goldsmith

  • 10 Dec 2012
  • PE

Preqin's Funds in Market database currently holds information on 101 funds in market with South America being a focus for investment, either exclusively or as part of a wider geographic focus. Collectively, these funds are targeting $43.0bn to invest in the continent. Of these 101 funds, 39 are being raised by US-based fund managers; the South American country with the most fund managers raising funds is Brazil, with 23 fund managers.

Funds of funds are the most common type of fund in market in South America, with 25 funds of funds collectively targeting an aggregate $6.1bn in capital commitments. This includes 22 private equity, one infrastructure and two real estate funds of funds. Despite the fact that these funds are the most numerous, they are targeting less aggregate capital than other fund types. Real estate funds with a focus on South America are targeting a greater amount of capital than funds of funds, with a collective target size of $9.6bn by 13 vehicles. Infrastructure funds are just behind this value, targeting an aggregate $7.4bn by 14 funds, with 10 growth funds nearly mirroring the fund of funds in market targeting an aggregate $6.1bn in capital commitments.

The fund with the largest target size is Actis 4. This fund is a pan-emerging markets growth fund, which includes South America in its location focus. It has a target size of $3.5bn and was launched in May 2011. The fund focuses on a wide range of industries.

The fund with the largest target size that focuses exclusively on South America is the BTG Pactual Brazil Infrastructure Fund II. This fund has a target size of $1.5bn, and was launched in August 2011.  The fund focuses specifically on the development of infrastructure in the energy, transportation and utilities sectors.

With the year nearly at an end, there have been 33 South America-focused funds that have closed so far in 2012 raising $16.3bn, compared with the 48 funds that closed in 2011 raising an aggregate $16.4bn in capital commitments. Funds of funds are most numerous type of fund in 2012 to date, with eight of those funds having reached a final close raising an aggregate $1.6bn, followed by natural resources funds with six funds closed raising $5.1bn.

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