Venture Equity Latin America's Mid-Year Report Announced

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Latin American private equity activity remains robust for the first half of 2007 according to the just released Venture Equity Latin America's Mid-Year Report.

Latin American private equity activity remains robust for the first half of 2007 according to the just released Venture Equity Latin America's Mid-Year Report.

Findings in the report include details on fund raising, investment, and exits. Investment into Latin America is on pace to exceed last year's near record levels, with roughly $2.3 billion being invested in the first half of 2007. Brazil and Mexico dominate the activity, but as certain sectors in these countries are becoming inundated with private equity funds both locally and from abroad, lower valuations make the rest of Latin America a more attractive option. For example, the Andean region received $376 million in investment so far this year. This number is not completely dominated by Chile (as was the case in 2006) meaning that other countries in the Andean region are beginning to see a greater equity presence.

Fund raising is on its way to a record year. In the first half of 2007, 20 fund closings amounted to a total of roughly $1.5 billion. Add that to the two billion-dollar fund closings that took place in July and not much remains to exceed the $3.66 billion that was raised in 1998. Though several surveys have indicated a shift of investment focus from Brazil to Mexico, 2007 fundraising data shows that over 80% of funds raised in the first half of the year will be dedicated to Brazil.

Overall exit disbursements in the first half of the year totaled almost $1.6 billion, which is on track to match exit disbursements in 2006. Brazil in particular has been favorable for exits through capital markets, as four private equity investors exited portfolios via IPOs and another two exited via follow-on offerings in the first half of the year.

Venture Equity Latin America's Mid-Year Report provides deal analysis in addition to data presented in an easy-to-use electronic format that will help the user to:

  • Track and act on vital industry trends with macro-level year-to-year comparison data
  • Stay on top of specific region(s) of interest with country-by-country wrap up analysis
  • Gauge competitors' level of activity and markets of interest through a deal tracker feature
  • Find out which fund managers have successfully raised new capital
  • Understand what's working for others with a comprehensive listing of all known exits in the market for 1H 07.

Venture Equity Latin America is a twice monthly publication that delivers comprehensive information on the Latin American private equity and venture capital industry. The focus of the publication is on venture capital and private equity deal flow; new fund raising endeavors; exit activity; restructuring and bankruptcy proceedings impacting existing investments; and regulatory developments.

The publisher, WorldTrade Executive, Inc. also publishes Latin American Law and Business Report and Practical Latin American Tax Strategies, as well as other periodicals and reports covering international transactions. For more information on Venture Equity Latin America's Mid-Year Report, visit http://www.wtexecutive.com or contact Jay Stanley at 978-287-0301.

Press Release Contact Information:
Jay Stanley
WorldTrade Executive, Inc.
2250 Main St.
Concord, MA 01742 USA
978-287-0301
email: Jay @ wtexec.com
Website: http://www.wtexecutive.com

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GARY BROWN

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