Axxon closes second Brazil fund on $315m

The Brazilian mid-market firm attracted an international group of LPs to close its second fund over its initial target.

Axxon Group has closed Axxon Brazil Private Equity Fund II on $315 million, beating the lower mid-market fund’s $250 million target.

The firm will focus on $15 million to $50 million investments in small and mid-sized Brazilian companies.

Axxon used a similar strategy with its first fund, which raised €100 million. Fund I received strong backing from French financial services company Natixis Group, though that company is not a significant backer of the second fund, a source told Private Equity International in a prior interview.

The firm has invested in seven platform companies with nine add-on acquisitions since founder and managing partner Nick Wollak launched Axxon in 2001.

The second fund closed just months after opening in late 2010, Wollak said. Axxon attracted a variety of limited partners from North America, Europe, Asia, Australia and Latin America. The LP pool included private pension funds, financial institutions, advisors, family offices, sovereign wealth funds and fund-of-funds.

The firm avoided Brazilian LPs, who typically try to exert greater control over a fund’s investments than traditional international LPs, Wollak said.

Wollak attributed the firm’s marketing success to the fact that Axxon’s fund targets smaller investments than many other larger Brazilian funds. Earlier this week, Vinci Capital joined Gavea Investimentos and BTG Pactual as the third recent Brazilian fund to close over $1 billion.

“It’s a combination of good success stories from Brazilian investments and the fact that LPs want to balance their emerging market portfolios with Asian and non-Asian holdings,” Wollak said.

Stanwich Advisors worked as a placement agent for the fund.