Advent holds $1.65bn fund close

The firm’s fifth Latin American vehicle takes the title for the region’s largest private equity fund raised to date.

Global mid-market firm Advent International has closed its fifth Latin America-focused fund with $1.65 billion in commitments.

The fund had initially gone to market in the fourth quarter of 2008 with a $2 billion target, but given the global economic situation the firm later agreed with LPs that $1.5 billion was a more reasonable target, according to a spokeswoman.

Advent’s Latin American Private Equity Fund V – 25 percent larger than its $1.3 billion predecessor closed in 2007 – received commitments from 51 other investors, including public and corporate pensions, endowments and foundations, funds of funds, sovereign wealth funds and family offices, according to a statement. The Washington State Investment Board approved a $100 million commitment to the fund, while the Pennsylvania State Employees’ Retirement System committed $15 million and The New Mexico Public Employees’ Retirement Association was considering a $20 million commitment, according to pension documents. 

The Advent statement, which did not disclose the identities of limited partners, said the majority of LPs were investors in LAPEF IV. In terms of geography, 56 percent of LPs in the recently closed fund were North American, 25 percent were European and 19 percent from the Middle East, Asia, Latin America and Africa.

“We are very pleased with the strong support we received from both existing and new investors, particularly given the challenging fundraising environment,” Ernest Bachrach, Advent managing partner and co-head of Latin America, said in a statement. “We believe the high level of demand reflects our clear leadership position in Latin America, with our large, experienced team, successful track record established over 14 years and differentiated strategy for building value in companies.”

The fund will continue the control buyout and expansion financing strategy of its predecessor, focusing on sectors including financial services, airport services, business services, retail/consumer and education. Its typical equity cheque will range from $50 million to $200 million in companies with enterprise values between $50 million and $750 million.

Advent has raised more than $5.1 billion for Latin America since 1996 and has invested in more than 40 companies. Its 33 investment professionals in the region are spread across offices in São Paulo, Mexico City and Buenos Aires.