Latin American Private Capital Update - March 9, 2021Latin American Private Capital Update March 9, | | | 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. |
| LAVCA looks forward to sharing its 2021 Industry Data & Analysis in the coming weeks. In the meantime, we are pleased to provide a sneak peek of key takeaways:
Exits: It was a record year with USD11.09b divested across 106 exits, largely driven by public markets activity mostly on the Brazilian stock exchange. Both PE and VC backed companies held major IPOs in 2020 and there is a slate of private capital backed companies that will IPO in 2021, so this trend will likely continue this year.
Investments: 2020 was a record year for investments overall with USD16.33b invested across 653 deals.
> Private Equity: Private Equity deals during the pandemic concentrated their investments on software, business/professional services and payments, and took an increased role in providing growth equity financing to companies in the region.
> Private Credit: LAVCA began tracking Private Credit in 2020 to reflect the increased importance of this asset class in the region. In 2020, Private Credit was the largest private capital asset class in terms of investment, with two landmark transactions; Oaktree Capital’s USD2.45b of LATAM Airlines and Apollo’s USD1b of Aeromexico.
> Venture Capital: Investment in 2020 will be the second best year on record, following a blockbuster 2019. The acceleration of digitalization trends due to the pandemic sustained fund manager interest in Latin American startups. While SoftBank was less active as it waited for its portfolio to mature after deploying billions, other global investors stepped in on major growth rounds.
> Infrastructure: Latin America’s rapid digital transformation has created opportunities for GPs investing in the data infrastructure sector. GPs are supporting the deployment of wireless infrastructure technologies through investments in fiber optic networks, internet service providers, telecommunications towers, and data centers.
Fundraising: Fundraising demonstrated surprising resiliency considering the pandemic and difficult macroeconomic conditions with just under USD7b raised across 51 fund closings for LATAM dedicated funds.
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| LAVCA Members can now download the 2021 Directory of Latin American Pension Funds which includes an analysis of the key markets, recent regulatory changes, directory of regulatory agencies and key contacts at the top pension funds in each country.
The Directory was written and prepared by the LAVCA Research Team. For data-related requests, contact research@lavca.org.
DOWNLOAD the report: LAVCA members can login here to download the report. Non-members can buy the report here. | | |
| The EMPEA | LAVCA Structuring for Exit report , created with support from Adobe Capital and IDB Lab, is a deep dive analysis of innovative financing approaches used by investors in Latin America and other global markets to generate liquidity in challenging exit environments.
This practical tool for investors and entrepreneurs includes a taxonomy of financing approaches across the debt-to-equity spectrum, as well as resource tables of advantages, risks and typical company profiles for each instrument.
Six in-depth case studies from Latin America, India and the Caucasus detail deal sourcing, deal terms, investment management, and exit and returns. A special section summarizes lessons learned and best practices.
Grounded in LAVCA data and interviews with 30 active investors, the report outlines how both traditional commercial and impact investors have utilized deal structuring mechanisms to expand the range of investible opportunities, meet impact goals, achieve downside protection and realize stellar returns.
This publication is made possible with support from Adobe Capital and IDB Lab.
SAVE THE DATE for upcoming virtual case study discussions from the report at FLII @ Home on 24-28 May 2021. More details to come.
DOWNLOAD the full report here. | | |
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Private Equity News
Gramercy Funds Management and Andino Capital Create USD50m Joint Venture (en español) (LexLatin) Gramercy Funds Management and Andino Capital have created a USD50m joint venture for GAPIF (Fondo de Inversión de Oferta Privada). The fund will provide loans for mid-sized companies in Peru. Read more
FIDC Agro SGT Raises BRL48m (em português) (Startupi) FIDC Agro SGT, a credit fund created by TerraMagna, Sparta and Grano Capital, has raised BRL48m to finance distributors of agricultural inputs in Brazil. Read more
XP Investimentos to Launch Fund of Funds XP Selection Alternativo (em português) (Brazil Journal) XP Asset is seeking authorization from The Securities and Exchange Commission of Brazil (CVM) to launch a fund of funds and raise up to BRL1b. The fund plans to invest primarily in Brazilian private equity funds and may allocate up to 20% to international fund managers. Read more
Lexington Partners Appoints New Senior Advisor for Brazil (Press Release) Lexington Partners has appointed Cassio Casseb as a Senior Advisor focusing on Brazil. Read more
H.I.G. Capital Partially Exits Brazilian Advertising Company Eletromidia via IPO for USD17m (em português) (Money Times) H.I.G. Capital has partially exited its stake in Brazil-based outdoor advertising company Eletromidia via the company’s BRL871.6m (approximately USD162m) IPO on the B3. According to regulatory filings, H.I.G. Capital’s Vesuvius FIP Fund sold shares worth BRL91.97m (approximately USD17m), reducing its stake from 80.48% to 53.33%. Read more
Arlon Group and FitPart Invest USD18.5m in Brazilian Logistics Solutions Sotran (em português) (Forbes) Arlon Group and FitPart have invested BRL100m (approximately USD18.5m) in Sotran, a Brazil-based logistics solutions company serving the agribusiness sector. Read more
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Venture Capital News
CapSur Capital Leads ~USD205m Round for Delivery Logistics Platform Loggi (Bloomberg) CapSur Capital led a ~USD205m round for Brazil-based delivery logistics unicorn Loggi, with follow-on from monashees, SoftBank, GGV, Microsoft, and Sunley House at a reported USD2b valuation. Read more
IDC Ventures and Fuel Venture Capital Lead USD70m Series C for Mobile Payments Platform RecargaPay (TechCrunch) Miami-based IDC Ventures and Madrid-based Fuel Venture Capital led a USD70m Series C for RecargaPay, a Brazilian mobile payments platform, with participation from ATW Partners, Lun Partners, and Experian Ventures. Read more
SoftBank Invests in Brazil-based Edtech UOL EdTech (em português) (Startupi) SoftBank, through its SoftBank Latin America Fund, has made an undisclosed investment in UOL EdTech, a Brazil-based education technology company. Read more
Lightspeed Ventures Leads USD32.5m Series B for Mexican Credit Card Issuer Stori (TechCrunch) Lightspeed Ventures led a USD32.5m Series B for Stori, a Mexican credit card issuer, with follow-on from Vision Plus Capital BAI Capital, and Source Code Capital. Read more
Banco BV Invests BRL100m in Brazilian Credit Platform Trademaster (em português) (Startupi) Banco BV invested BRL100m in Trademaster, a Brazilian credit platform for small and medium retailers. Read more
FinTech Collective Leads USD14m Series A for Mexican Payroll Platform minu (TechCrunch) FinTech Collective led a USD14m Series A for minu, a Mexican payroll platform providing Mexican employees access to their earned wages, with participation from VEF, XYZ Ventures, FJ Labs, Tom Gonser (DocuSign) and Mike Dinsdale (Gusto), and follow-on from QED Investors, Next Billion Ventures and Village Global. Read more
Leo Capital, FJ Labs, alpha4 Ventures and Meesho Invest USD6m in Colombia Social Commerce Elenas (TechCrunch) Leo Capital, FJ Labs and existing investors Alpha4 Ventures and Meesho have invested a USD6m Series A for Colombia-based social commerce startup Elenas. The company previously raised a USD2m seed round in October 2020. Read more
Angel Ventures and Mountain Nazca Lead USD4.2m Series A for Chilean Debt Collection Colektia (en español) (AMEXCAP) Angel Ventures and Mountain Nazca led a USD4.2m Series A for Colektia, a Chile-based debt collection platform, with follow-on from Kayyak Ventures, Devlabs and Fen Ventures. Read more
Canary Leads USD1.5m Round for Financial Education and Savings Platform Flourish (em português) (Exame) Canary led a USD1.5m round for Flourish, a US-based B2B financial education and savings rewards platform with customers in the US, Bolivia and Brazil, with participation from Xochi Ventures, First Check Ventures, Noveus VC, GVAngels and angels Brian Requarth (Latitud), Rodrigo Xavier (Bank of America) and Beth Stelluto (Charles Schwab). Read more
Astella Investimentos Invests BRL7m in Brazilian Fintech Sled (em português) (Startupi) Astella Investimentos has invested BRL7m in Brazil-based fintech Sled. Read more
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Real Assets News
CDPQ to Invest BRL1.8b in Joint Venture with Telefónica and Launch FiBrasil (Press Release) Caisse de dépôt et placement du Québec (CDPQ) and Telefónica Group have entered into an agreement for the construction, development and operation of FiBrasil Infraestrutura e Fibra Ótica (FiBrasil), an independent optical fiber network in Brazil. As part of the agreement, CDPQ has agreed to invest up to BRL1.8b (approximately USD321m) in the joint venture. Read more
Patria Closes Core Infrastructure Fund (Press Release) Patria has announced the closing of its first evergreen publicly-traded Core Infrastructure fund of approximately BRL800m total commitments. The vehicle will seek to invest in high-quality, operational power generation and transmission assets in Brazil. Read more
EnfraGen Acquires Altra-backed Termovalle (en español) (Valora Analitik) Power generation platform EfraGen has acquired Altra-backed Termovalle, a natural gas plant in western Colombia. Financial terms of the deal were undisclosed. Read more
KKR to Acquire Majority Stake in Telefonica Chile’s Fiber Optic Network in a Deal Valued at USD1b (Press Release) KKR has agreed to acquire a majority stake in the existing fiber optic network of Telefonica Chile in order to establish an open access wholesale fiber optics company. Telefonica will hold a 40% stake in the new company. The transaction is valued at USD1b and subject to regulatory approvals. Read more
MGM Innova Capital Invests USD4m in Wirewatt (Crunchbase) MGM Innova Capital has invested USD4m in Wirewatt, a Mexico-based clean energy financing platform providing loans to homeowners and SMEs to finance solar, battery and other energy-efficiency improvement projects. Read more
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Investment in Latin America
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