There are 76 private equity firms based in South America, and they have plenty of capital sitting on the sidelines.
According to the latest data from private equity research firm Preqin, companies in the region have raised $17 bn over the past decade, and they are sitting on an estimated $6.5 bn in dry powder – that’s plenty of capital that can be put to work in the region.
Nearly half the private equity funds there are focused on venture investments, with buyout funds next in popularity.
The implication is that the region is poised for growth, which means investor relations will become increasingly important over the next few years.
As existing positions are exited, strategic acquirers will need to prepare to communicate their moves to shareholders, and those who go public will make their first forays into IR.
The abundant dry powder will create a foundation for the subsequent wave of IR entries.