An Overview of Latin American Investment Strategies and Structure

 
Author:
Alyssa A. Grikscheit & Sidley Austin
May 2015

Overview

An increasing number of potential investors are seeking investment opportunities in Latin America. The reasons are varied. Some financial investors seek emerging market exposure or portfolio diversification or are attracted to the region’s potential for long-term macroeconomic growth. Others invest for strategic reasons, and still others focus on valuation or currency dislocation. The types of investors interested in the region are also expanding from large institutional investors, development banks, pension funds, and companies with strategic interests to smaller institutional investors, family offices, and even high net worth individuals. The reality is an overall increase in investor interest and exposure to the region from a variety of investors, some experienced and some approaching the region for the first time. The goal of this chapter is to explore some of the principal investment strategies for investing in Latin America as well as some of the commonly used structures for deploying capital in the region.