Roughly 19 firms are trying to raise 24 funds in the Brazilian private equity market targeting a total of $7.5 billion in commitments, according to Ocroma Alternative Investments, which provides investors with access to alternative investment in Latin America.
Firms currently raising funds in Brazil include GP Investments, which is raising an undisclosed amount after closing its prior fund on $1.3 billion in 2007, and Stratus Group, which is raising $300 million for its first fund with international limited partners after raising four domestic funds.
The $7.5 billion being raised is notable as compared to the total of $5.6 billion of total commitments in the Brazilian market in December 2004. In June 2007, commitments stood at $17.6 billion. The 24 funds being raised have targets between $15 million for seed capital investment and $2 billion for large buyout transactions.
The firms are raising 11 buyout and 13 venture funds, according to the study. About three-quarters of the capital is being raised by buyout funds.
Broken down by target, 13 of the funds are generalist funds, in which five specialise in agribusiness and six specialise in renewable energy.
Ocroma spoke with 104 private equity firms and considered funds with a local Brazilian presence that accept capital from foreign investors. The study also included firms that plan to invest at least a portion of the capital in Brazil. Funds that invest in real estate were disqualified. The study was conducted between June and October.