Advent raises $ 2 billion fund to invest in Latin America, mainly in Brazil, Colombia, Mexico and Peru


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SAO PAULO (Reuters) – Private equity fund manager Advent International said on Tuesday that it had completed raising a $ 2 billion fund to invest in Latin American companies, with an eye on assets made cheaper by the recent devaluation of currencies in the region.

This is the manager’s seventh fund focused on the region.

The manager, who has invested in Latin America since 1996, foresees 13 to 15 investments in companies in the financial services, health, industry, consumption and technology sectors, mainly from Brazil, Colombia, Mexico and Peru.

Advent says it has a target of between US $ 50 million and US $ 300 million, which should lead to bigger deals than those made by its previous funds, since currencies in Latin America – mainly the real one – are devalued during the coronavirus pandemic.

The real has fallen nearly 30% against the US dollar since the beginning of the year.

“It gives us the firepower for bigger businesses,” said Patrice Etlin, a senior partner at Advent and a member of the company’s global executive committee, in an interview. He added that the fund is 65% higher in reais than the previous one, which was slightly higher in dollars and was raised in 2014.

Reuters reported last year that Advent was trying to raise a new fund for the region.

Despite the recessionary outlook for Latin America due to the pandemic, Etlin said that the region offers good investment opportunities. “In our current portfolio, we have seen a rapid recovery from the worst moment of the pandemic.”

Etlin said that the manager has devoted a lot of time to analyze technology companies in Brazil, as he considers the environment in the country attractive for these investments.

Earlier this month, Nubank purchased Easynvest, Advent’s investor broker, in a cash and stock deal that gave the private equity firm an undisclosed minority stake in Brazil’s most prominent fintech.

Last year, Advent launched a $ 2 billion technology fund and opened an office in Palo Alto, California, as part of expanding its business to technology investments.

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