Alyssa A. Grikscheit
There is renewed interest in private equity investing in Latin America after what has been, for many investors in the region, quite a rocky ride. Private equity investing in Latin America is generally considered to have begun in earnest in 1993. Prior to that time, the principal foreign investors were commercial banks who chose to convert bad corporate debt into equity positions in local companies. But by the early 1990s, funds such as G.P. Capital Partners and the Argentine Private Equity Fund I, L.P. were formed to actively seek out private investment opportunities in the region. Ten years later, many of the early Latin American regional and country-specific funds have reached the end of their lives, and some important lessons have been learned.