Carlyle to open in Peru

The global alternatives group has struck a joint venture agreement with Peruvian financial services heavyweight Credicorp.

Alternative asset manager The Carlyle Group will start investing in Peruvian companies via a joint venture arrangement with Credicorp, a local financial services firm.

“We have observed Peru for years and believe the market conditions, including economic growth, job creation, rising middle class and political stability, create a favorable investment climate,” said Carlyle co-founder Daniel D’Aniello in a statement.

Lima: Carlyle office to open before year-end

Carlyle is not the first global private equity firm to link up with a local Latin American group. In September last year, The Blackstone Group acquired a 40 percent stake in Pátria Investimentos, a Brazilian private equity firm.

Carlyle is planning to establish an office in Peru’s capital Lima before the end of 2011, staffed by two executives from Carlyle and two from Credicorp. The team will make growth capital and buyout investments, targeting sectors such as consumer, healthcare and education. These sectors are benefitting from a growing middle class and increasing consumer demand in the country, the two firms said.

Credicorp has more than $17.5 billion in assets under management via a number of subsidiary companies. The largest of these is Banco de Crédito del Perú, “BCP”, Peru’s oldest and largest bank.

Juan Carlos Felix, a managing director in Carlyle’s South American buyout team, said Credicorp would play a “central role” in both deal sourcing and acquisition financing.

To date Carlyle’s South American deal activity has centred on Brazil, where it has made three investments. Carlyle did have a Mexican investment team, but this spun out in 2009 to become EMX Capital. The firm remains backed in part by Carlyle.