DGF targeting international LPs

DGF Investimentos has joined a growing group of Latin American private equity firms who have gone abroad for support, seeking $200m for its new offering.

DGF Investimentos is targeting $200 million for its latest fund, Private Equity International has confirmed. The Brazilian firm will be targeting limited partners outside the country for the first time.

DGF, led by Brazilian Association of Venture Capital and Private Equity president Sidney Chameh, typically invests in early stage and growth investments in Brazilian companies without a sector focus, though it tends to prefer technology, health and service industries, according to its website. The firm invests between R10 million (€4.2 million; $5.4 million) and R50 million (€21.2 million; $27.2 million) in companies with revenues between R10 million and R200 million (€84.8 million; $108.6 million).

According to a report from Valor Economico, Chameh expects fundraising to conclude in October. The firm has engaged Mercury Capital Advisors as a placement agent. DGF and Mercury could not be reached for comment at press time.

Global LPs’ growing demand for Latin American exposure has led several Brazilian firms to start seeking foreign capital. Blackstone Group-backed Patria Investimentos received a $75 million commitment from the New York State Common Retirement Fund for its fourth fund, which closed on $1.25 billion in August. In April, the Oregon Investment Council committed $100 million to Vision Brazil Investment’s latest real estate fund.

Last year, the Latin American Venture Capital Association found that 90 percent of global investors who participated in their LP Opinion Survey said they were either allocating to funds in Latin America or doing due diligence, up from 82 percent in 2010.

Chameh founded DGF in 2001. The firm maintains around R500 million (€212 million; $271.5 million) in assets under management.