How many private equity vehicles focus on South America? According to Preqin, the count is currently at 85, and they are shooting for $44 bn in capital commitments. So far, they’re making great progress – with capital commitments of just above $3.4 bn and almost a third having achieved at least one interim close.
Of course, this isn’t a big shock, as there’s been plenty of interest in South American among institutional investors, and locally, interest in investor relations is increasing (as evidenced at the recent IR Magazine Brazil Awards), which demonstrates that the South American market is becoming more adept at courting sources of foreign capital.
In fact, it makes sense that Brazil would be at the front of the pack. Funds focused on investing in Brazil are looking to attract half the region’s target capital commitments, and 39 of the 85 funds include Brazil in a larger geographic focus. 20-three of them are strictly eyeing investment opportunities in Brazil, and they’re on the prowl for $12.9 bn to invest.
So far this year, 21 funds focused on investments in South America have hit final close, pulling in an aggregate $10 bn. And today’s private equity capital-raise fuels tomorrow’s IPOs.