Lack of IPOs in Brazil offers PE opportunities


October 10, 2013

A cooling economic growth rate, which affects valuations, and closed IPO market, which limits available capital for business to use for growth investments, is making PE more attractive in Latin America, writes Euromoney in an article that discusses the latest research from Latin American Venture Capital Association (Lavca).


Noteworthy is that fundraising is up 100% over the same period last year, to USD 3.8 billion with final or partial closings for 36 separate funds raised in the first six months of 2013. Furthermore, proceeds from exits were up 67% on the first half last year, to USD 1.5 billion (See Euromoney graphic for more information).


Currency depreciations are affecting Brazils PE market, while Mexico is seeing fewer large cap deals. At one time Brazil was the main target for PE dollars, and it still attracted 70% of the money in this latest reporting period but Peru, Columbia, and Mexico are coming online.

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