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Advent International Raises US$2.1b Fund, Largest Private Equity Fund Dedicated to Latin America

6 November 2014

(Press Release) Advent International, one of the largest and most experienced global private equity investors, today announced that it has received US$2.1b in commitments for Advent Latin American Private Equity Fund VI, reaching the Fund’s hard cap after less than six months in the market.

LAPEF VI is the largest private equity fund ever raised for Latin America.1 Advent’s previous fund dedicated to the region, LAPEF V, closed on $1.65 billion in 2010.

“We are pleased with the strong support we received from both existing and new investors,” said Advent Managing Partner Patrice Etlin. “We believe the high level of demand reflects our leadership position in Latin America based on our strong 18-year track record and differentiated strategy for creating value in companies. Latin America continues to be an attractive region in which to invest. It is a large, growing market with an expanding middle class, opportunities for productivity enhancement, a high degree of family ownership and limited competition from other financial sponsors relative to the size of the markets.”

Continuing the strategy of its predecessor funds, LAPEF VI will focus on control-oriented investments in later-stage companies throughout Latin America, investing mainly in Brazil, Colombia and Mexico. The Fund will target sectors where Advent has significant experience both regionally and globally, including business and financial services; healthcare; industrial and infrastructure; and retail, consumer and leisure.

“LAPEF VI underscores our longstanding commitment to investing in attractive opportunities in our target sectors throughout Latin America,” said David Mussafer, Managing Partner and Co-Chairman of Advent’s Executive Committee. “We believe our industry and local market expertise, combined with our global resources and operational approach to creating value, provides us with a distinct competitive advantage in the region. We are pleased investors continue to recognize this and we remain focused on exceeding their expectations.”

Over 60 institutional investors participated in LAPEF VI, including public and corporate pension funds, endowments and foundations, funds of funds, sovereign wealth funds, family offices and other financial institutions. The majority of the capital came from limited partners in LAPEF V, with Advent admitting a select number of new strategic investors into the Fund as well. Approximately half the capital was raised from North American investors, one-quarter from European investors and the remainder from institutions in Latin America, the Middle East and Asia.

Advent’s leadership position in Latin America

With the new Fund, Advent builds on its position as one of the leading private equity investors in Latin America. Since 1996, the firm has raised more than $6 billion for investment in the region from institutional investors globally. During the same period, it has invested in 46 companies and fully exited its positions in 33 of those businesses. With 40 investment professionals working from offices in Bogotá, Mexico City and São Paulo, Advent has the largest dedicated private equity team in the region.

Advent’s recent investments in Latin America include Ocensa, Colombia’s largest crude oil pipeline; Dudalina, a leading Brazilian apparel manufacturer and retailer; InverCap, a leading Mexican mandatory pension fund manager; Cataratas do Iguaçu,2 the largest concessionaire and operator of services in national parks in Brazil; Alianza Fiduciaria, Colombia’s largest independent trust and custody services provider and asset manager; and United Medical, a Brazilian specialty pharmaceutical company acquired by Advent portfolio company Biotoscana.

Recent exits include Dufry, a global travel retailer with operations in Latin America; Kroton Educacional, the largest private education company in Latin America and one of the largest worldwide; Atmosfera, the leading industrial laundry company in Brazil; and Milano, a leading retailer of affordable apparel in Mexico.