Advent raises $2 billion fund for Latin American company bets

SAO PAULO (Reuters) – U.S. non-public equity firm Advent International has raised a $2 billion fund to make investments in Latin American companies, it stated on Tuesday, its seventh mad regarding the gap, hoping to focus on sources made more cost-effective by depreciation in local currencies.

The firm, which has been investing in Latin The united states since 1996, is eying 13 to 15 alternatives in financial providers, healthcare, industrials, user and expertise, mainly in Brazil, Colombia, Mexico and Peru.

Advent says it is focused on equity investments between $50 million and $300 million, which might maybe well goal peaceful lead it to presents bigger than those made by its old funds in local currencies, as money in Latin The united states – mainly Brazil’s valid – has devalued for the duration of the coronavirus pandemic.

The valid is down practically 30% against the U.S. greenback since the inspiration of the year.

“It presents us firepower for bigger presents,” Patrice Etlin, a managing companion at Advent in São Paulo and member of the firm’s worldwide executive committee, stated in an interview. He added that the fund is 65% bigger in reais than the old one, which changed into a chunk bigger in greenback phrases.

Reuters first reported that Advent changed into searching for to purchase a brand new fund for the gap closing year.

No matter the recessionary outlook for Latin The united states on account of the pandemic, Etlin stated the gap affords genuine funding alternatives. “In our most up-to-date portfolio, we now have considered a quick restoration from the worst of the pandemic.”

Etlin stated the fund has been examining tech companies recently, as he considers the ambiance in Brazil fine for such investments.

Earlier this month, Brazilian financial startup Nubank obtained Advent-backed dealer Easynvest in a money and inventory deal that gave the non-public equity firm an undisclosed minority stake in Brazil’s most prominent fintech.

Closing year, Advent launched a $2 billion dedicated tech fund and an administrative heart in Palo Alto, California, as share of its growth in expertise investments.