 Vol. 5 No. 7, June 2007 | |
| ANNOUNCEMENTS | |
 LAVCA's 2nd Annual member-exclusive LP/GP Roundtable will be held September 21st at the Grand Hyatt New York immediately following the 14TH Annual Dow Jones Private Equity Analyst Conference. Over 100 institutional investors and LAVCA members attended LAVCA's inaugural 2006 Roundtable to further the dialogue between limited partners (LPs) and general partners (GPs) active in Latin America and the Caribbean. Invited speakers for 2007 include:
Participants at this invitation-only members event will learn "What it Takes to Succeed in Latin American Private Equity" from regional case studies and LAVCA's distinguished LP panel. Participants also receive privileged access to tools including:
For inquiries, contact LAVCA President Christina Kappaz.  Attending LAVCA's 2007 LP/GP Roundtable? Join us two days earlier for the Dow Jones 14th Annual Private Equity Analyst Conference on September 19-20 at the Waldorf Astoria New York. LAVCA Members Receive a 15% Discount off PEAC Registration! SUBMIT TO LAVCA'S 2007 DEALBOOK Highlight your firm's successes to investors and the media! Submissions are considered for inclusion in LAVCA's 2007 DealBook -- a LAVCA publication distributed annually to international institutional investors and the media. Please note our Priority Deadline of Wednesday, July 20th for presentation to investors and press attending LAVCA's 2007 LP/GP Roundtable. |
Held in partnership with:  Sponsorship Opportunities Available! Gold Sponsors:   |
| NEWS PREVIEWS | |
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LAVCA WELCOMES NEW EXECUTIVE DIRECTOR CATE AMBROSE July 3, 2007 -- The Latin American Venture Capital Association (LAVCA) welcomes Cate Ambrose as its new Executive Director. Ms. Ambrose will take leadership of the not-for-profit trade organization in mid-summer. Ms. Ambrose is well known to many venture capital and private equity (VC/PE) practitioners and other industry stakeholders through her long tenure as Chair of The Economist's Annual Roundtable on Latin American Private Equity. LAVCA. ADVENT BUYOUT LARGEST TO DATE FOR LATAM July 3, 2007 -- Advent International has announced that it has signed a definitive agreement to acquire the housing business subsidiaries of Corporativo Javer S.A. de C.V., one of the largest privately held home builders in Mexico. The acquisition, funded with a combination of equity and debt, is Advent's largest buyout in 11 years of investing in Latin America. Advent International. ADVENT PORTFOLIO CO. BUYS MEXICAN RETAILER June 29, 2007 -- Advent International has announced that its portfolio company Controladora Milano, Mexico's largest discount clothing retailer, has acquired Melody, the leading women's apparel retailer in Mexico. The acquisition, run by Galicia and Ritch Muller, S.C., was funded with equity capital provided by Advent and Milano's other shareholders and debt financing provided by Banamex. The value of the transaction was not disclosed. Advent International. AUREOS' EMERGE INVESTS IN SALVADORAN BUILDER June 27, 2007 -- Emerge-Central America Growth Fund (Emerge) has made a US$1.5 million investment in Constructora e Inmobiliaria Centroamericana (Conica), a Salvadoran construction company that develops housing projects in the eastern region of El Salvador. Conica;s sales have tripled in the last three years. Aureos Capital. En Español: EMERGE INVIERTE EN CONSTRUCTORA EN EL SALVADOR IFC INVESTS IN BRAZIL'S BANCO FIBRA June 25, 2007 -- IFC, the private sector arm of the World Bank Group, today signed an agreement to invest in Banco Fibra, S.A. The equity investment of up to $20 million, through the subscription of Banco Fibra's new common shares, will help the bank play a more effective role in developing the country's private sector. The IFC investment is still subject to approval from the Brazilian authorities. IFC. PAMPA BUSCA COMPRAR CENTRAL TERMICA 19 de junio de 2007 -- El grupo energético Pampa Holding de Argentina dijo el martes que suscribió un convenio de exclusividad con el objetivo de comprar la central térmica Central Piedra Buena (CPB), por 85 millones de dólares. Pampa Holding es controlada por el local Grupo Dolphin y tiene participaciones en la transportadora de energía Transener , en la distribuidora de energía Edenor y en la generadora termoeléctrica Central Puerto entre otras firmas del sector. Reuters. GLOBELEQ COMPLETES POWER SALE June 18, 2007 -- Globeleq, the emerging markets power company, has sold its power businesses in Latin America and the Caribbean to a consortium of India's DS Constructions and Israel Corporation for US$542 million. Globeleq is 100% owned by CDC Group plc. Actis, a leading private equity investor in emerging markets, manages CDC's investment in Globeleq. Globeleq. SELL SIDE FIRMS SCRAMBLE TO ADD LATAM ANALYSTS June 14, 2007 -- With Latin American equity markets surging, sell-side firms are scrambling to add analysts and expand coverage to meet the rising demand for quality research. "We're planning a massive expansion," says Rowe Michels, New Yorkbased director of Latin American research for Bear, Stearns & Co. The activity comes as no surprise, given the recent performance of the region's capital markets and a plethora of new equity offerings. Institutional Investor Magazine. CALPERS: US$100M TO EMALTERNATIVES June 13, 2007 -- EMAlternatives LLC announced that the California Public Employees' Retirement System ("CalPERS") has awarded EMAlternatives an initial $100 million discretionary mandate for investments in emerging private equity markets. "We are delighted to have CalPERS as our first client," said Ernest Lambers, Chief Investment Officer and Managing Partner. CalPERS. NSG ADQUIRE CONTROLE DA ZAMPROGNA 30 de maio de 2007 -- A administradora de investimentos estrangeiros NSG Capital, do Rio de Janeiro, anunciou ontem a compra do controle acionário da gaúcha Zamprogna, fabricante de tubos de aço de até oito polegadas. O valor da negociação e o percentual adquirido não foram revelados. A negociação, que levou seis meses para ser concluída, vai envolver trocas de ações e de outros ativos, de acordo com Luiz Eduardo de Abreu, novo diretor-presidente da empresa e presidente do conselho de administração. Valor Econômico. BIOCANCER RECEBE INVESTIMENTO DO FUNDO NOVARUM 23 de maio de 2007 -- A Biocancer e o Fundo Novarum, da Jardim Botânico Partners, assinaram nesta segunda feira 28 de Maio de 2007, acordo no qual o Fundo investirá na Biocancer com o objetivo de expandir as atividades da empresa por todo o território nacional e alavancar sua participação internacional. A empresa recebeu investimentos em 2004 da Fundação Biominas e do FundoTec I, administrado pela FIR Capital. FIR Capital. | |
| BRIEFS | |
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ASHMORE BAGS HSBC PENSION MANDATE July 1, 2007 -- EM asset manager Ashmore has won a $670m mandate from HSBC Bank’s pension fund to invest in emerging markets, including Latin America. Ashmore's Multi Strategy Fund invests in four underlying investment themes: dollar debt, local currency and local currency debt, special situations and equity. Ashmore has attracted state and city pension funds in recent years as they seek to boost returns in a low yield environment. Ashmore has been most visible in Latin America on the private equity side, snapping up power utilities across the region. Watson Wyatt advised the HSBC Bank Pension Scheme. Latin Finance. BRAZILIAN SHELL CO LAUNCHES US$300M IPO June 28, 2007 -- Invest Tur, a private equity fund focused on Brazil's tourism real estate market, has launched an IPO scheduled to price in mid-July that will raise between US$300-$400M via Bovespa. The company, headed by Carlos Novis Guimarães, former private-sector coordinator at the IDB, has no assets, and is looking to lure institutional buyers with the management's credibility and their ability to execute profitable trades in Brazil's tourism real estate sector. "We already have a $1.2bn pipeline that has been developed over the past three or four years," Guimarães tells LatinFinance, adding despite the lack of assets, Invest Tur will be listed on the Novo Mercado, Bovespa's highest corporate governance category. Institutional buyers in the US, Europe, Brazil and Asia will be offered bundles of 30 shares, at $1,000 per share. This is the second shell acquisition company to go public in Brazil, though the first to raise 100% of the capital with investors. Latin Finance. FMO INVESTS US$3M IN EMERGE June 27, 2007 -- Aureos Capital has announced the investment of US $3 million by the Netherlands Development Finance Company (FMO) in Emerge-Central America Growth Fund (Emerge). This will be added to the investment done by the MIF and the development finance institutions of the United Kingdom and Norway, CDC Group Plc and Norfund for a total of US $21 million. The money will be invested in SMEs in Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the Dominican Republic. Latin Finance. ETON PARK LOSES ARGENTINA APPEAL June 25, 2007 -- Argentina's Appeal Court has upheld a ruling by the country's anti-trust regulator to block a $54m bid by US equity firm Eton Park Capital Management for a 50% stake in local electricity transmission firm Transener. The regulator blocked the bid because, it said, the US investment firm did not have sufficient experience of the company's business in what is a key economic sector. Transener handles 95% of the country's electricity. Latin Finance. DLJ SOUTH AMERICA FUND TARGETS $200M June 22, 2007 -- DLJ Investment Partners, an affiliate of Credit Suisse, is marketing both a mezzanine fund and a South American buyout/growth equity fund, according to LBO Wire. The mezzanine vehicle has secured at least $1.3 billion, although no target or cap was reported. The South American fund is targeting $200 million, and will focus on Argentina, Brazil and Chile. PE Week Wire. GAVEA MOVES INTO CREDIT CARDS June 21, 2007 -- Gávea Investimentos, the Rio-based hedge fund and private equity shop, has purchased a 25% stake in Brazilian credit card provider Policard for an undisclosed amount. Monashees Capital, a venture capital fund, took a 5% stake in the business. An executive at Gávea tells LatinFinance he believes the credit card sector, especially at the middle and lower income level, is set for strong growth going. "We're happy with this one," he says. Policard's assets include 2m credit cards, and the company is aiming to reach BRL1bn in revenues in the coming three years. Latin Finance. BUY SIDE SEEN MOVING TO LATAM FROM ASIA June 21, 2007 -- International investors are apparently brushing aside recent EM volatility, while LatAm is seeing some relative value flow, according to an S&P study. "Fund managers are demonstrating some fatigue with Asian markets and appear to be rotating into other regions, especially Latin America, where relative value may be more appealing," says S&P chief economist David Wyss. After dramatic gains in China and India, 56% of fund managers say LatAm markets offers the most attractive opportunities, compared with 53% citing Asian markets and 29% tipping emerging Europe. The S&P study also finds that 48% of investors are more positive about the outlook for EM stocks in the second half of 2007 than at present. Only 5% said they were more bearish. The survey also found 51% more positive about the outlook for local currency debt for the remainder of 2007, compared to only 32% for external currency debt. Some 73% of fund managers said they expected their assets under management in EM securities to increase by the year-end, while only 4% predicted a decrease. Latin Finance. BRYSAM BUYS STAKE IN MEXICO'S IXE June 12, 2007 -- Brysam Global Partners, a New York-based private equity firm focused on consumer financial services, has invested approximately $230 million for a 28% stake in Ixe Grupo Financiero of Mexico. PE Week Wire. PCG CLOSES US$400M EM FUND OF FUNDS June 8, 2007 -- PCG International has closed its first investment vehicle, a $400 million fund of funds backed solely by CalPERS. Private Equity Online. Related: CALPERS COMMITS US$400M TO EMERGING MARKETS MEXICO: LANDMARK MICROFINANCE IPO June 6, 2007 -- Banco Compartamos, a longtime IFC microfinance client in Mexico, successfully launched a $407 million initial public offering, the world's largest to date in the microfinance sector, the Financial Times reports. Working closely with IFC to build its effectiveness, Compartamos has seen its client base increase tenfold since 2001. IFC's Atul Mehta said the record-setting IPO "confirms the level of maturity of Mexican financial markets, and the growing awareness among investors of the potential of the microfinance sector as regards profitability, impact on development, and social responsibility." IFC Sustainable Investor. Read also: MICROFINANCE UNLEASHES MEXICAN ENTREPRENEURS | |
| INDUSTRY & PEOPLE | |
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-- Eduardo Elejalde, Chair of the Latin American Venture Capital Association (LAVCA) and Founding Partner of Latin America Enterprise Fund Managers (LAEFM). MAUA HIRES FRANKLIN TEMPLETON MANAGER June 25, 2007 -- Brazilian hedge fund Mauá Investimentos, has hired Mauro Cunha from Franklin Templeton Asset Management's Brazil office, to head the fund's equities team. Cunha will start at Mauá on July 10 as William Trosman, former head of equities at Mauá, takes on a new role developing new businesses for the fund. Earlier this year Lourenço Bastos-Tigre, left Mauá's fixed income team to join Greenwich-based Tudor Group. He was replaced by Fernando Monteiro who came from Quest Investimentos, another prominent Brazilian hedge fund. Latin Finance. SUSANA DE LA PUENTE RESURFACES June 19, 2007 -- Following a few months' vacation in her native Peru, Susana de la Puente has resurfaced after "retiring" from JPMorgan. The veteran Andean region banker has joined The Rohatyn Group, the EM investment specialist, according to market sources. De la Puente was JPM's country head for the Andes, Central America and Caribbean and left the bank amid a senior management restructuring that is apparently still going on. The banker, who advised Peru on its telecoms privatization in 1994, joins former client Pedro Pablo Kuczynski, who was appointed by Rohatyn earlier this year as a senior advisor. Prior to becoming prime minister of Peru in 2001, Kuczynski served as minister of economy and finance. He is charged with developing private equity investments with a focus on LatAm at Rohatyn. Latin Finance. | |
| EVENTS | |
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2007 NASVF CONFERENCE September 17-19, 2007, Little Rock, AR, United States 14TH ANNUAL DOW JONES PRIVATE EQUITY ANALYST CONFERENCE September 19-20 2007, New York, NY, United States A sold-out crowd of over 1,000 of the world's most prominent institutional investors, advisors and fund-of-funds managers gathered for two days of unparalleled networking and learning at the September 2006 Dow Jones Private Equity Analyst Conference. Join the industry's all-star investors, limited partners and other key industry players for the 14th Annual Private Equity Analyst Conference. LAVCA members receive a 15% discount for this event! LAVCA'S 2007 LP/GP ROUNDTABLE September 21, 2007, New York, NY, United States Following the highly successful 2006 LP/GP Roundtable, LAVCA is pleased to announce its 2nd Annual LP/GP Roundtable, to be held in New York City in conjunction with the 14th Annual PE Analyst Conference. Over 100 institutional investors and LAVCA members attended our inaugural event designed to further the dialogue between limited partners (LPs) and general partners (GPs) active in Latin America and the Caribbean. Invited guests can expect the same quality networking and learning event in 2007. For sponsorship inquiries and other questions, contact LAVCA President Christina Kappaz. 2007 EVCA VENTURE CAPITAL FORUM October 3-5, 2007, Stockholm, Sweden 2007 EMPEA/PEI EMERGING MARKETS PRIVATE EQUITY FORUM November 28-29, 2007, London, United Kingdom To submit articles, press releases, or event information to The LAVCA Reporter, subscribe or unsubscribe, or to request that this publication be sent to others within your organziation, please contact LAVCA Research Director Ramona DeNies. | |