South American-Focused Private Equity Fundraising

by Louise Maddy

  • 15 Aug 2011
  • PE

Preqin’s Funds in Market product lists 85 private equity vehicles currently in market that include South America in their geographic focus or focus specifically on the region. Collectively, these funds are targeting $44 billion in capital commitments. 31% have already had at least one interim close and aggregate commitments for these funds currently stands at just over $3.4 billion.

Funds with a focus on investment in Brazil are currently targeting over half of this aggregated target capital, with 39 out of the 85 funds including the country in a broader geographic. 23 of these funds concentrate solely on Brazilian investment, seeking $12.9 billion to invest in a range of industries including property and infrastructure.

The largest vehicle currently in market that incorporates South America in its geographic focus is the Actis Emerging Markets 4 fund. The fund, managed by Actis, is seeking $3.5 billion in capital commitments and seeks to build on a proven mid-market private equity investment strategy, making control and minority equity investments of $50 million to $300 million in companies located the emerging markets of Asia, Africa and Latin America.

As of August, 21 South America-focused funds have reached final close in 2011 having raised an aggregate $10 billion. Of these, the largest fund is the $1.8 Gávea Investment Fund IV Fund.  The hybrid fund, managed by Gávea Investimentos, is focused on long-term investment positions, primarily in Brazil, utilizing PIPEs and similar instruments to gain direct and indirect exposure to desired assets.

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