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South American Private Equity Real Estate Fundraising

by Andrew Moylan

  • 25 Sep 2009
  • RE

Whilst the private equity real estate market in Latin America remains very small, it is one that has been growing in recent years. Since 2005, 21 primarily South America focused private equity real estate funds have reached a final close, raising an aggregate $8 billion. 2007 saw $2.5 billion raised by five funds, whilst the four funds that closed in 2008 raised $2.3 billion. There are a further four funds currently in market, targeting commitments of $1.4 billion in total.

Of all South American funds raised since 2005, 75% are managed by firms headquartered outside South America, with 25% managed by firms based on the continent. Notable firms based in South America include Prosperitas Investimentos, which raised $612 million for Prosperitas Real Estate Partners II, and Patria Investimentos, which is seeking $400 million in commitments for its Pátria Brazil Real Estate Fund II. The largest South American funds to have closed include Pramerica Real Estate Investors’ $869 million PLA Residential Fund III and the $800 million Brascan Brasil Real Estate Partners, managed by Brookfield Asset Management.

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