By Joe Leahy in São Paulo
(Please note: This is an excerpt of the original article. Click here to read the article in the Financial Times.)
June 15, 2011— Burger King, the Miami-based private equity-controlled fast-food group, has announced a 10-fold expansion plan for its restaurant chain in Brazil.
The move comes as private equity groups are expanding aggressively into Latin America with Carlyle Group announcing also on Wednesday that it has raised $1bn in equity in two funds to invest in the region.
“Broad economic trends, including the rising middle class, make South America in general and Brazil in particular a desirable investment destination,” Carlyle said in the statement.
Private equity and venture capital groups raised $8.1bn for Latin America last year, a 122 per cent increase on a year earlier, according to figures from the Latin American Venture Capital Association.
More than half of this amount was for regional funds, with Brazil-specific funds accounting for 14 per cent of the total followed by Mexico with 11 per cent.