Linzor closes $465m Latin American fund

The firm’s second mid-market buyout fund will target investments in several Latin American countries like Chile and Peru, but significantly will not look for opportunities in Brazil.

Linzor Capital Partners has closed its second fund on $465 million, surpassing its initial $350 million target. The mid-market buyout fund will focus on making investments in Chile, Mexico, Colombia, Peru and Argentina.

The firm typically makes equity investments of $20 million to $85 million in Latin American mid-market companies with enterprise values between $75 million and $400 million, according to its website.

Despite the recent popularity of Brazilian private equity funds, Linzor will not target investments in the country with its new pan-regional fund, chief financial officer Sharon Matthews told Private Equity International.  

“It’s not that we’re saying Brazil isn’t going to be a good market. We just believe we have a really strong niche play in our target markets,” Matthews said. “We look to provide our investors with more diversity as opposed to targeting a single country or single sector.”

Linzor was founded in 2006 by three former JP Morgan senior executives, Tim Purcell, Alfredo Irigoin and Carlos Ingham. Its first fund, Linzor Capital Partners I, raised $181 million for mid-market investments in the education, retail, healthcare and financial sectors.

In addition to attracting new Latin American and international limited partners, 100 percent of the first fund’s LPs invested in LCP II, Linzor said in a release. LCP II’s LPs included pension funds, endowments, foundations, financial institutions and family offices.

Matthews attributed the re-ups to the success of LCPI, as well as Purcell and Irigoin’s management of the JP Morgan Latin America private equity fund, which they founded in 2000.

Linzor declined to disclose LP and fund performance information. 

Monument Group worked as placement agent for LCP II outside of Latin America, while BICE Inversiones worked as a placement agent for the fund in Chile.