There may have been news this week of a stalled IPO market in Brazil (see Reuters), but the country is definitely not slow to attract private equity giants. BW reports that Goldman Sachs is returning to Brazil with the intent to invest in private companies in the infrastructure, commodities and telecommunications sectors with hopes of achieving up to 35% returns. What could block achieving the high returns that GS is hoping for are fiscal and legal challenges, exchange rates, as well as the overall macro environment, says BW.
The articles says that along with GS, other big names such as Advent, Warburg Pincus LLC, Hamilton Lane Advisors LLC, Actis LLP, TPG Capital, 3i Group Plc and Carlyle Group LP have opened offices in Brazil since 2008. Elsewhere, an article in a Brazilian real estate publication also describes private equity opportunities country with a focus on infrastructure investing in an in-depth look at 3i’s activities in Sao Paolo.