Latin American Private Capital Update - January 12, 2021Latin American Private Capital Update January 12, 2021 | | | The LAVCA Private Capital Update is a bi-weekly email featuring industry news, research, events, and updates on investors from private equity, venture capital, real estate, infrastructure, and family offices in Latin America. |
| READ about the latest trends in private capital investing in Latin America in recent articles from the Financial Times and Latin Finance.
According to the Financial Times, a number of factors are converging to create a thriving tech scene in Uruguay:
> Uruguay has experienced ongoing economic and political stability.
> Uruguay has a well-educated population and established the creation of free trade zones.
> Uruguay’s competent handling of the pandemic has further burnished its image.
> dLocal has emerged as Uruguay’s first unicorn in 2H2020 with a US$200m investment lead by LAVCA member General Atlantic.
> Uruguay-based GeneXus, a sophisticated coronavirus app with early success, "heaped praise" from Apple and Tech Growth Coalition member Google bringing further attention to the country with a total population of 3.4m.
“In the early days in Silicon Valley it was a small ecosystem with a small, highly-educated population. So when you have that, and people know each other, you start seeing momentum. It’s like you can feel that happening in Uruguay [now],” said Ivonne Cuello, CEO, LAVCA.
“Once you have the talent in one place, a lot of good things start to happen,” added LAVCA member Francisco Alvarez-Demalde, Managing Partner of Riverwood Capital.
Read the full article here.
According to Latin Finance's article on M&A amidst the global pandemic:
> Predictions suggest a potential record high M&A scenario in Brazil in 2020 with more than 1,250 deals.
> Nearly two dozen IPOs were launched in Brazil during the pandemic, more than any single year in over a decade.
> Distressed assets are seen coming on the market throughout the region, while multinationals could be set to sell off underperforming assets to regroup.
> PE/VC fundraising and exits gained momentum despite COVID-19, with funds raising 30% more capital y-o-y in 1H2020 and funds cashing out US$5.1b+ during that same period.
Patrice Etlin, Managing Partner at Advent International and former LAVCA Chair, said “attractive valuations and positive, long-term market dynamics make for still-compelling investment opportunities in the region.”
Read the full article here. | | |
| VALUATION update: IPEV guidelines AS OF 31 DECEMBER | | |
The International Private Equity & Venture Capital Valuation Guidelines Board has announced that the special guidance published in March 2020 on IPEV Valuation Guidelines during the COVID-19 pandemic is still relevant when estimating fair value at 31 December 2020.
The alternative asset industry closes out 2020 having assisted numerous investee companies weather the COVID-19 induced economic storm, saving jobs, providing needed goods, and services, and supporting investors.
"We reaffirm that fair value is the best measure of valuing private equity portfolio companies and investments in private equity funds...Applying the IPEV Valuation Guidelines with rigor and staying true to the principles of fair value will allow managers and valuers to rise to the challenge and extend the track record of providing investors with decision useful transparent information."
Read more here.
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| LAVCA’s VC+tech members represent the leading early stage and tech investors active in Latin America and around the globe. Members play a pivotal role in the growth of the venture ecosystem and industry throughout the region.
NEW: Access LAVCA's updated VC directory of member firms investing in VC/tech in Latin America, including details on sector, stage, geo preferences, and more.
This digital directory profiles the core group of LAVCA member venture investors, corporates, and tech organizations dedicated to supporting startups and the tech ecosystem in Latin America.
LAVCA members are qualified investors and professionals in the Latin America private capital industry and are approved by the LAVCA Board on the basis of industry relevance, peer references, and investment activity. Latin American Tech Growth Coalition members are leading global and Latin American tech companies and investors with a common goal of advancing high growth startups in Latin America.
Access further information about The Latin American Tech Growth Coalition and other relevant tech-related lists and directories.
To APPLY for LAVCA Membership, please submit an application here. | | |
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Private Equity News
Australis Partners Acquires Majority Stake in Sekura (Press Release) Australis Partners has acquired a majority stake in Mexican multiline insurance company Sekura for an undisclosed amount. As part of the transaction, Arpa Capital and non-executive shareholders exited from the ownership of Sekura. Read more
IDB Invest Commits US$20m to HMC Andean Private Debt Investment Fund (Press Release) IDB Invest has committed US$20m to HMC Andean Private Debt Investment Fund, administered by HMC, a fund management and distribution firm focused in Latin America. The fund will provide financial solutions to medium-sized companies in Peru, Colombia, and Chile. Read more
Australis Partners Acquires 80% Stake in Galénica (Press Release) Australis Partners has acquired an 80% stake in Chile-based vitro diagnostic company Galénica. Financial terms of the transaction were not disclosed. Read more
Andes Plus Fund I Receives US$20m in Commitments from Undisclosed Family Offices and DFI (en español) (América Retail) Andes Plus Fund I has received US$20m in commitments from undisclosed family offices and an unnamed Dutch DFI. The fund will focus on SMEs that work on artisanal manufacturing in Colombia and Peru. The program is managed by the government agencies ProColombia and PromPeru. Read more
Linzor Capital Partners Acquires Majority Stake in Uno Salud Dental (Press Release) Linzor Capital Partners has acquired a majority stake in Uno Salud Dental, a Chilean dental care and aesthetic company. The amount of the transaction was undisclosed. Read more
H.I.G. Capital Invests in KM2 Solutions (Press Release) H.I.G. Capital invested an undisclosed amount in KM2 Solutions, a business process outsourcing provider in Latin America and the Caribbean. The capital will support the company’s expansion into high-growth markets as well as investments in customer experience technologies. Read more
CADE Approves Acquisition of Aqua Capital-backed Fertiláqua by ICL Brasil for US$120m (em português) (Valor Econômico) CADE has approved acquisition of Aqua Capital-backed Fertiláqua, a Brazilian plant nutrition firm, by ICL Brasil for US$120m. Read more
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Venture Capital News
SoftBank Group and Dynamo Lead US$190m Series E in Brazilian E-commerce MadeiraMadeira (TechCrunch) SoftBank Group and Dynamo led a US$190m Series E round in MadeiraMadeira, a Brazilian home goods e-commerce startup, with participation from VELT Partners, Brasil Capital, and Brazilian family office Lakewood Investment Management, and follow-on from monashees and Flybridge Capital. Read more
SP Ventures Reaches R$130m Second Close for AgVentures II (AgFunderNews) SP Ventures announced a R$130m second close for AgVentures II, with a R$40m commitment from French animal nutrition company Adisseo and US phosphate mining company Mosaic. Read more
Mountain Nazca Leads US$17.5m Series A in Peruvian Edtech Crehana (en español) (Forbes) Mountain Nazca led a US$17.5m Series A in Crehana, a Peruvian edtech, with participation from Endeavor Catalyst, IFC, and Salesforce Ventures, bringing the company’s total round of funding to US$23m after Acumen Latam Capital Partners led an undisclosed investment in March 2020. Read more
IDB Invest, HBM Healthcare, and Morgan Rio Capital Invest US$18m in Colombian Healthtech Farmalisto (en español) (Valora Analitik) IDB Invest, Swiss healthcare investment fund HBM Healthcare, and NY-based hedge fund Morgan Rio Capital Management invested US$18m in Farmalisto, a Colombian online pharmacy with operations in Colombia, Mexico, and Peru. Read more
QED Investors Leads US$17.5m Series A in Chilean Insurtech Betterfly (IBS Intelligence) QED Investors led a US$17.5m Series A in Betterfly (formerly Burn to Give), a Chilean certified B-Corp insurtech providing life insurance to SMEs and incentivizing policyholder’s wellbeing with subsidized coverage. Read more
Oria Capital Invests R$40m in Brazilian Analytics Platform Knewin (em português) (Press Release) Oria Capital invested R$40m in Knewin, a Brazilian news and social media analytics platform. Knewin previously raised R16.5m from KPTL and Invisto. Read more
Amplify Partners Leads US$8.5m Series A in Media Production Platform RunwayML (LatamList) San Francisco-based VC Amplify Partners led a US$8.5m Series A in RunwayML, a deep learning media production platform for creatives, with participation from Lux Capital and Compound Ventures. Read more
monashees Leads R$30m Round in Brazilian Fintech Nomad (em português) (Valor Econômico) monashees led a R$30m round in Nomad, a Brazilian fintech offering US checking accounts for Brazilian residents. Nomad is founded by Patrick Sigrist (iFood) and Marcos Nader (DocuSign). Read more
Darwin Capital and Angels Invest R$12m in Brazilian Neobank Linker (em português) (NeoFeed) Darwin Capital, angels Marcelo Sampaio (Hasdex) and Roberto Nishikawa (Itau Unibanco), and others invested R$12m in Linker, a Brazilian neobank for SMEs. Read more
Microsoft’s WE Ventures Receives R$5m Commitment from Brazilian Insurance Porto Seguro (em português) (Startupi) Microsoft’s Women Entrepreneurship Ventures (WE Ventures) announced a R$5m commitment from Brazilian insurance holding company Porto Seguro. Read more
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Real Assets News
Appian Raises US$775m for Appian Natural Resources Fund II (Press Release) Appian Capital has closed its second fund (“Fund II”) for US$775m. The vehicle will focus on investments in metals and mining, targeting assets in jurisdictions with proven geology, supportive governments, and a robust legal framework including Brazil, Australia, Mexico, Peru, Chile, and Canada, where Appian has existing operations. Read more
Rockville Capital Launches US$147m Rockville Solar Energy I and Acquires Catemu SpA Solar Plant (Press Release) Rockville Capital has launched a US$147m Rockville Solar Energy I fund and has acquired Catemu SpA Solar Plant. Read more
BCIE to Invest up to US$50m in KorBCIE (en español) (Press Release) Banco Centroamericano de Integracion Economica (BCIE) will invest up to US$50m in Fondo de Capital Privado de Infraestructura para el Desarrollo de Centroamerica (KorBCIE). The vehicle will focus on infrastructure projects across Central America. Read more
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| LAVCA Members receive a discount on select events. For information on member discounts, contact Catalina Santos. |
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Investment in Latin America
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