Brazil might be in the headlines because it’s hosting the World Cup, but it is in the private equity media news for different reasons. Brazil has become the darling of Latin America’s private equity market, despite slowing in Brazil fundraising last year. When asked to explain why in a Bloomberg TV broadcast, Cate Ambrose, President of Latin American Venture Capital Association, points to its stable economy over the last 10 years.
It has moved beyond the uncertainty and volatility its economy was once known for, she said. Globalization and demand from China for its natural resources are contributing to its attractiveness. Ambrose added that the region has recently found new oil and gas resources. Brazil was also relatively “unscathed” by the financial crisis in 2008 and 2009. “
It was a blip on the charts for Brazil as the banks were secure with consumer demand coming back online much faster than the rest of the world,” says Ambrose. Target sectors for PE investors include those driven by the emerging Brazilian middle class, specifically retail, healthcare, education, and fast food. (Image Source: LAVCA)