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LAVCA in the News

Latin America Funds Increasing

13 September 2007

Latin America funds increasing

Sep 13, 2007 — Private equity funds in Latin America are stepping up, with figures showing that funds had reached $2 billion (£1 billion) in July.

This monthly figure is almost half the total accumulated for the whole of 1998.

Much of the money raised in Latin America has been directed at Brazil, with the country’s GP Investments closing its fourth fund at $1.03 billion and Brazilian venture capital firm Fir Capital closing a deal with partners Draper Fisher Jurveston for $40 million.

However, while some 80 per cent of the money raised in the region over the last six months has been aimed at Brazil, experts say interest in other countries is increasing.

“There are lower returns in developed markets and Asia has become overheated and crowded, so investors see Latin America as the last horizon for strong growth opportunities,” Cate Ambrose, director of the Latin American Venture Capital Association, told eFinancial News.

Countries such as Chile, Peru and Colombia are all seeing increased interest