(IVC) Even with the recent capital flight from emerging markets, the Latin American private equity and venture capital market had expanded in the first half of the current year. This was achieved through a flurry of fundraising, investments and exits, at a higher rate compared to the same time last year.
The conclusions recently mentioned come after the Latin American Private Equity and Venture Capital Association released data for the period 2012 to 2013. According to LAVCA, in the first half of 2013, these firms had raised US$3.8 billion. The amount comes after either finalization or partial closure of 36 different and separate funds. This is 100% increase in capitalization for the area compared to 2013 figures. As of the monment, about USD3.8 billion had already changed hands compared to just USD1.89 billion from just ten final or partial closures in 2012.
According to LAVCA Director of Research Juan Savino, “The emergent theme in LAVCA 1H2013 data is in contrast to headlines reporting a flight out of emerging markets in response to expected policy shifts by the US Federal Reserve. We have seen an uptick in private equity abd venture capital activity across the board in Latin America with an increasing universe of global and local investors taking part.”