Private equity fund managers in Latin America held partial or final closes on 36 funds totaling about $3.8 billion during the first six months of 2013, according to data from the Latin American Private Equity & Venture Capital Association. The combined total represents double the amount raised during the same period last year, when 10 funds collected about $1.89 billion.
A number of funds raised in Colombia, Mexico and Peru have been oversubscribed this year, according to LAVCA. In May, Peru-based Nexus Group’s NG Capital Partners II reached its $600 million hard-cap.
“We have seen an uptick in private equity and venture capital activity across the board in Latin America with an increasing universe of global and local investors taking part,” Juan Savino, director of LAVCA research, said in a statement.
Patrice Etlin, a managing partner at Advent International, told Private Equity International he expects fundraising in Latin America to continue to increase in 2014 and 2015.
Brazil, however, witnessed a slowdown in fundraising during 2012, according to PEI data. After peaking in 2011 with $7.87 billion raised, fundraising in the country slumped to $4.63 billion last year.
In terms of investment dollars, private equity and venture capital fund managers invested $2.9 billion in 108 transactions during the first half of 2013, a five percent increase year-on-year.
The number of deals completed in Brazil during the first half of 2013 nearly doubled year-on-year, from 11 to 20, according to LAVCA. Across Latin America, mid-market consumer transactions between $25 million and $100 million rose 44 percent during the first half of 2013, while the number of IT deals climbed 21 percent.
On the exit front, proceeds from portfolio company sales were up 67 percent to $1.5 billion during the first half of the year compared to 2012. Mexico saw five total exits during the period, including two private equity-backed IPOs from hospitality chains, according to LAVCA.
LAVCA is a non-profit organisation that supports private equity and venture capital growth in Latin America. More than 150 firms, including investment firms and fund managers belong to LAVCA, according to its website.