latinamerica

Private Equity Confidence in Latin America

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March 16, 2013

Preqin’s latest research reveals that 43% of private equity investors active in Latin America will look to increase their allocations to the region over the longer term. Furthermore, of 28% of investors with existing exposure to or an interest in investing in Latin America will be increasing their private equity allocations to the region over the next 12 months, and 61% will be maintaining their current allocations in 2013.

 

Other Key Facts:

• 38% of investors stated that they will be committing to a Latin America-focused fund in 2013, and 7% will look to make a commitment in 2014.

 

• 59% of Latin America investors view Brazil as presenting the best investment opportunities within Latin America. However, investors are increasingly looking to diversify their investments, with 52% of investors stating that Colombia presented the best investment opportunities, followed by Mexico (41%) and Peru (17%).

 

• Venture capital deal flow in Latin America increased significantly in 2012, with a 70% increase in the number and a 143% increase in the aggregate value of venture capital deals compared to 2011. However, the number of buyout deals completed in Latin America remained at 59 for both 2011 and 2012, and the aggregate value of buyout deals decreased slightly from USD 3.1bn to USD 3bn over the same time period.

 

• Deal flow in Latin America may increase in the next 12 months as December 2012 saw the amount of uncalled capital available for investment (dry powder) reach an all-time high of USD 35bn for Latin America-focused funds. (Image source: Preqin)

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