(AltAssets) September 29, 2010 – Spanish private equity firm Mercapital has opened a new office in Latin America to invest in the expansion of Spanish companies in the region.

The opening of an office in Sao Paulo, Brazil, is to be followed by a second base in the region later in the year to provide support to current and prospective portfolio companies.

The firm is eyeing opportunities in Brazil and Mexico for portfolio companies Arsys, Jofel, Ossa and Recoletas, following the success that larger Spanish businesses such as Santander, Endesa and Iberdrola have found in the region.

The move, which is to make Mercapital the only Spanish firm with a direct presence in the region, will allow it to target market opportunities in Brazil, Chile, Argentina, Colombia, Mexico and Peru. The new and planned offices are to be staffed by local employees with industrial and private equity experience, alongside senior personnel from Spain.

Mercapital chairman and former EVCA head Javier Loizaga said, “The internationalisation of the large Spanish companies has been one of the largest value creation drivers in Europe over the past five years.

“By building a direct presence in Latin America Mercapital will play an active role in the natural continuation of this process, assisting the expansion abroad of the most dynamic medium sized Spanish companies, and contributing our 25 years expertise in private equity to our future investees in Latin America,” he added.