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Axxon targets $250m for second Brazil fund

The group has gathered about $126m from US investors alone, and more from non-US LPs.

Axxon Group Private Equity has collected about $126 million from US investors for its second fund targeting investments in Brazil, according to a filing with the US Securities and Exchange Commission.

The fund has also attracted capital from investors outside the US, though the total amount raised so far could not be determined. Axxon declined to comment.

Stanwich Advisors is working as a placement agent for the fund, according to the filing. Stanwich did not return a call for comment.

The SEC filing said the firm has attracted 14 investors into the fund, which received its first commitment, at least from US investors, in April.

Axxon is targeting $250 million for Fund II. The firm tries to invest between $15 million and $50 million in small and medium-sized companies, according to its web site. Axxon’s first fund raised €100 million.

Axxon’s investments include Green World, a large franchise network in Latin America focused on natural products; Guerra, a manufacturer of road equipment in the region, and Aspro, which makes compression systems for compressed natural gas with factories in Brazil and Argentina.

The firm is headed by founder Nick Wollak, who launched the group in 2001. The major investor in the first fund was French financial services firm Natixis Group, though the firm will not be a significant investor in the second fund, according to a person with knowledge of the firm.

Brazil is a center of private equity activity as its economy has experienced rapid growth and proved more resilient in the economic downturn than more developed economies. Like other attractive emerging markets in Asia, Brazil’s middle class is growing quickly, boosting business growth beyond exports in the domestic economy.

The country’s growth has also been driven by China’s appetite for natural resources. The country is rich is resources like minerals and oil and is expected to become one of the main exporters of oil in the future.