Latin America: Venture Capital's Next Hot Destination?
03/16/2007
Author:
Latin American Venture Capital Association
Chicago, IL
United States
www.lavca.org | Categories:
Private Equity
Venture Capital |
Article:
For Immediate Release
LATIN AMERICA: VENTURE CAPITAL’S NEXT HOT DESTINATION?
Emerging Markets Investors Gather for Debate in Guatemala City – Record Attendance for LAVCA’s 5th Annual Summit
March 16, 2007 | Guatemala City – More than 100 leading international fund managers, development banks and institutional investors met today at Guatemala City’s Grand Tikal Futura Hotel for the Latin American Venture Capital Association’s (LAVCA) 5th Annual Summit.
“Latin America can expect to add considerably to its existing competitive advantages – which include a strong IPO market, a tradition of entrepreneurship, and fewer barriers in terms of geography, culture and language.”
-- LAVCA President Christina Kappaz |
Record attendance did not surprise conference planners. According to LAVCA Chair Eduardo Elejalde, investor confidence in Latin America and the Caribbean (LAC) is surging, with spectacular exits, growth of local IPO markets, strong fundraising and increasing local investor participation.
“It has been an exciting first quarter for venture capital and private equity in the region,” said Mr. Elejalde, Founding Partner of Latin America Enterprise Fund Managers (LAEFM). “With global markets so bullish on Latin America, we asked a provocative question at this year’s LAVCA Summit – “Is Latin America poised to replace BRIC?”
While cautious in their projections, panelists debating this question – representing the US National Venture Capital Association (NVCA), the International Finance Corporation (IFC), the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) and the US Department of Commerce – concurred that Latin America is certainly on a positive path.
“Speakers concluded that if the region continues its path of regulatory reform and increasing fund manager sophistication, Latin America can expect to add considerably to its existing competitive advantages – which include a strong IPO market, a tradition of entrepreneurship, and fewer barriers in terms of geography, culture and language,” said LAVCA President Christina Kappaz.
Keynote presenters included L. Enrique Garcia, President of the Corporación Andina de Fomento (the host of LAVCA’s 2007 Summit), Donald Terry, Manager of the MIF (a gold sponsor), Harry Strachan, CEO of Mesoamerica, and Federico Patiño, President of the Mexico Fund of Funds.
“The level of interest in our 5th Annual Summit corresponds with strong industry growth in recent years,” said LAVCA Research Director Ramona DeNies. “VC/PE investments in Latin America jumped more than 400% in 2006 to $4.25 billion. Additionally, there were improved scores for 6 of the 12 nations ranked in LAVCA’s forthcoming 2006 Scorecard on the LAC Investing Environment.”
In addition to panels on Enabling Local Investor Participation and Bolstering Fundraising through Effective Investor Outreach, participants were presented with data on current industry trends and regional case studies from fund managers including Citigroup Venture Capital International, EMP Latin America, Darby Overseas Investments, Aureos Capital and CRP Companhia de Participações.
Summit presentations and a participant list are available at www.lavca.org. For inquiries, please contact: