In a new study by the Latin American Venture Capital Association (LAVCA) and The Wharton School, over 100 private equity and venture capital firms reported making 184 investments in Latin America in 2008, totaling over $4.4 billion. Five countries (Brazil, Mexico, Colombia, Peru and Chile), all of which have achieved or neared investment grade status in recent years, dominated the regional private equity landscape by being the home to almost 80% of the companies that received Private Equity investments in 2008.
Fundraising in the region for the year totaled $6.4 billion, with 45 private equity and venture capital firms reporting new capital commitments. The majority of capital raised for Latin America went to regional funds (21%) and to fund managers based in the two largest markets; Brazil captured 48% of funds raised, and Mexico 15%. Peru and Colombia were also represented, with three new funds raised in each of those two markets and several managers aiming to close on commitments in the first half of 2008.
Additionally, there were 54 reported exits by Private Equity firms in Latin America for 2008.