Methodology

Methodology 

LAVCA’s industry data and analysis provide an overview of fundraising, investment and exit activity among private capital investors active in Latin America. Unless stated otherwise, the information presented in LAVCA reports and data products is drawn from LAVCA’s proprietary research database and is based on data obtained from surveys of industry participants, direct communications with fund managers, press releases, trade publications and exchanges with local venture capital associations.  

Fundraising, investment and exit amounts in LAVCA reports have been confirmed wherever possible directly by fund managers and other transaction participants. LAVCA updates historical data on a quarterly basis as new data from private capital investors and other sources becomes available.  

Any discrepancies between the aggregate statistics published by LAVCA and lists of funds and transactions included in tables and raw data files can be attributed to confidential information that has been omitted from public reporting. 

LAVCA’s reporting covers activity by long-term, private direct investment funds that are backed by institutional investors—along with their co-investors—across the following asset classes: private equity, venture capital, private credit, infrastructure and natural resources. These asset classes may be collectively referred to as ‘private capital’. LAVCA data and analysis exclude activity from real estate funds, funds of funds, traditional secondaries funds, investment holding companies, corporate/strategic investors, government-owned or -managed entities and captive investment vehicles, as well as funds investing primarily in publicly-traded equity or debt securities—except where these entities are co-investing alongside included investors. 

Funds 

Reported fundraising totals reflect only official closes (interim and/or final) as reported in primary and secondary sources or directly by fund managers. Capital commitments accruing prior to or between official closes are not included in reporting. 

Investments 

LAVCA classifies investments into one of four asset classes—private equity, venture capital, private credit, and infrastructure & natural resources—and into one of the following deal types: buyout, secondary buyout, bolt-on, PIPE, growth, venture capital (incl. seed, early-stage, and late-stage investments, as well as venture debt), replacement capital, secondary portfolio, PIPE or credit (incl. trade finance, senior loan, mezzanine, distress/restructuring, and NPL pool/portfolio).  

When determining how an investment should be classified, LAVCA takes into account the typical investment strategy of the fund manager(s) and other investors involved, the type of security acquired, the reported round number or type of transaction, the development stage of the company at the time of investment, the company’s business model and the type of product or service that the company provides. 

Only investments with participation by private, long-term direct investment funds (as outlined above) are included in reporting. However, for each included transaction, the total value of the deal (including participation by co-investors and acquisition or project financing) is counted toward aggregate totals. 

Purchases of LP stakes by secondary buyers are excluded from reporting. However, GP-led fund restructurings and direct secondary transactions are included. 

Exits 

Data on exit activity in LAVCA’s markets can be subject to significant selection bias in the reporting of such transactions. Accordingly, exit data is included in LAVCA reports and data products on a select basis and should not be treated as a comprehensive picture of all exit activity in LAVCA’s markets.  

Geographies 

LAVCA data and statistics are compiled based on the ‘market’ approach. Fundraising activity is categorized based on the countries, sub-regions or regions in which fund managers intend to invest, while investment activity is categorized based on the country headquarters of investee companies.  

For companies registered in offshore financial centers or developed markets, but operating exclusively or predominately in LAVCA’s markets, investment activity is categorized based on the geographic footprint of the operations of investee companies.  

In the case of regional and global or multi-regional funds, only those funds investing primarily in LAVCA’s markets are included in fundraising totals. Country-dedicated fundraising data and statistics reflect only those funds with a single-country strategy or mandate. Target allocations to individual markets within a broader global or regional fund are not attributed to single-country fundraising totals. 

For our reporting purposes, Latin America includes Mexico, Central America, South America and the Caribbean (excluding Puerto Rico and other overseas territories and departments). 

Additional Notes 

Abbreviations commonly used in LAVCA reports: 

PE- Private equity 

VC – Venture capital 

GP – General partner (fund manager) 

LP – Limited partner (fund investor) 

In some exhibits in LAVCA publications, percentage labels may not sum to 100% due to rounding. In all tables in which it appears, ‘N/A’ denotes a confidential or otherwise undisclosed value. 

For any questions about our research methodology, please contact LAVCA’s Director of Research at [email protected].