Advent raises $2.1bn for Latin America

The fund has reached its hard-cap in less than six months

Advent International has held a final close on its sixth Latin America-dedicated fund after less than six months in the market, according to a statement from the firm.

Advent Latin American Private Equity Fund VI (LAPEF VI) received $2.1 billion in commitments, which Advent claims makes it the largest private equity fund ever raised for Latin America. The firm’s previous vehicle dedicated to the region, LAPEF V, closed on $1.65 billion in 2010.

Advent held a first close on the fund at $2 billion on October 17th, and has yet to begin deploying the capital. According to investor sources the firm is still investing from LAPEF V.

Advent declined to comment beyond the statement.

More than 95 percent of the capital in the new fund came from returning investors, with the firm “admitting a select number of new strategic investors” into the latest vehicle. Commitments were made by more than 60 institutional investors, including public and corporate pension funds, endowments and foundations, funds of funds, sovereign wealth funds and family offices. Around half of the capital came from North American investors, a quarter from European investors and the remainder from institutions in Latin America, the Middle East and Asia, according to the firm.

The fund will follow the strategy of its predecessors, focusing on control-oriented investments in later-stage companies, targeting several sectors, including business and financial services, healthcare, industrial and infrastructure, and retail, consumer and leisure. The firm will invest throughout Latin America, but mainly in Brazil, Colombia and Mexico.

Advent, which has a team of 40 investment professionals in offices in Bogotá, Mexico City and São Paulo, has raised more than $6 billion for investments in Latin America since 1996, investing in 46 companies and fully exiting 33, according to the firm.

In December 2013 an investor group led by Advent acquired 22 percent of Ocensa, a crude oil pipeline in Colombia. In the same month the firm agreed to sell Brazilian industrial laundry company Atmosfera to Eurazeo-owned Elis. As of March 31, 2014, LAPEF V was generating a value multiple of 1.1x and a net internal rate of return of 9.5 percent, according to data from the Washington State Investment Board.

Advent is also currently investing its seventh global private equity fund, an €8.5 billion vehicle that closed in November 2012. In October the firm acquired Belgium-headquartered Corialis (Core Innovative Aluminium Integrated Solutions) in a deal valuing the company at between €600 million and €650 million.

According to data from the California Public Employees’ Retirement System, as of March 31, 2014, GPE VII was generating a value multiple of 1.3x and a net internal rate of return of 35.5 percent.