Deutsche’s Latin American team spins out

The former Latin American private equity team of Deutsche Bank has formed a New York-headquartered firm, Alothon Group.

Ettore Biagioni, former head of Latin American private equity at Deutsche Bank has led out a spinout to form a new private equity firm, Alothon Group.

The new firm, headed up by Biagioni along with former senior team members from Deutsche Bank, will manage the bank’s Latin American private equity portfolio.

The portfolio consists of companies located in Latin America, including Brazil, Argentina and Mexico. Under the terms of the spinout, individual team members will continue to manage the relevant assets.

The team, which will be based in New York, has invested over $500 million (€387 million) in over 30 companies in the Latin American region over the last decade, according to a press release.

Commenting on the transaction, Biagioni said in the statement: “With the formation of Alothon we will be able to apply our experience to a broader investor base for private equity investing in the region. We offer the private equity expertise of the New York based team that knows Latin America and an extensive network of managerial talent in the region.”

Prior to seeking independence, Biagioni’s team was part of DB Capital Partners, the bank’s direct investment arm that has been gradually dismantled since Deutsche began a retreat from private equity investing two years ago. 

One former member of DB Capital’s Latin American unit who will not be part of Alothon is Javier Banon who earlier this year joined Lehman Brothers. Banon had been with Deutsche for six years, latterly as a managing director.