Southern Cross raises $1.7bn for Latin America

The Buenos Aires-based firm blew past Fund IV's target to raise more than double the size of its predecessor vehicle.

The Southern Cross Group has held a final close on $1.68 billion for its Latin America Private Equity Fund IV.

The Buenos Aires-based firm began raising capital in December 2009 and exceeded its original target of $1.25 billion thanks to a “very high percentage” of returning investors, a source familiar with the matter told PEO.

Stanwich Advisors was the fund's placement agent and advisor.

Southern Cross’ investment strategy is not sector specific. Fund IV will focus on investments that cater primarily to Latin America’s growing consumer class, with an anticipated average deal size of between $100 million and $300 million.

Southern Cross’ previous Latin America-focused fund closed on $751 million in 2007, exceeding an original target of $500 million. That fund is not 100 percent invested, and the remaining dry powder will be used to fund follow-on investments in the firm’s existing portfolio companies.

In addition to Buenos Aires, Southern Cross has offices in Santiago, Sao Paulo, Mexico City and Greenwich, CT, and has operated portfolio companies in Argentina, Brazil, Chile, Peru, Uruguay, Paraguay, Bolivia and Mexico.