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| The LAVCA Private Capital Update is a bi-weekly email featuring industry news, research, events, and updates on private capital investor activity. This is a SPECIAL EDITION of the Private Capital Update with a dedicated focus on private real estate investment in Latin America.
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LAVCA spoke with Brian Finerty, CIO of LAVCA+ Member firm Equity International about the opportunity for real estate investment in Latin America, including the attractiveness of alternative asset classes such as telecom infrastructure, for-rent residential, healthcare, and self-storage and how recent volatility in contrarian markets like Argentina have generated more opportunities to acquire assets at distressed levels.
When asked about the impact of political risk on private real estate investing in the region:
 Latin America enjoys superior population and GDP growth relative to that in many developed markets, several of the large countries in the region have implemented orthodox economic reforms, opened themselves to trade, and reduced external debt as a percentage of reserves. Political risk is an ever-present consideration, especially in 2018 with so many significant elections. But, Brexit, the US elections in 2016, and other occurrences in developed markets are a reminder that political risk is everywhere in the world. If anything, the political environment in the US makes us more rather than less positive on Latin America over the long-term. In the short-term, there could be disruption, but that spells opportunity for us.
Read the full article here.
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Over the last few years, coinciding with a period of political uncertainty in major Latin American economies, private capital investors including international fund managers, Asian and Middle Eastern sovereign wealth funds and Canadian pension plans have been expanding real estate portfolios across the region.
But, what's driving private real estate in Latin America?
Long term fundamentals such as demographic and consumption trends are driving opportunities in residential and commercial real estate, with Equity International, Blackstone, PGIM, Greystar, ADIA, GIC, CPPIB, and others deploying capital and setting up local offices. Dedicated Latin American real estate funds have been raised by Jaguar Growth Partners, TC Latin America, Patria and Avenida Capital.
As local real estate investment markets develop and international investors expand in the region, LAVCA has been dedicating additional resources to tracking and engaging with this community. In 2017 we published our first real estate research report with LAVCA data (LAVCA Data & Analysis: Latin American Private Real Estate) and inaugurated a dedicated half-day real estate agenda at the LAVCA Summit & Investor Roundtable during LAVCA Week in New York. In September 2018 we will be repeating this program, under the leadership of LAVCA’s Director of Research Eduardo Roman, who has spearheaded the association’s push in this space and built our roster of real estate member firms.
Read the full executive briefing on private real estate investing in Latin American from LAVCA’s President Cate Ambrose here.
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For the second year LAVCA will host a dedicated Latin American Real Estate program during LAVCA Week, on the afternoon of September 26 at the Metropolitan Club in New York. Confirmed speakers are from leading firms including Equity International (READ more on what EI is doing in Latin America here), Cerberus Capital Management, TC Latin America Partners, Avenida Capital, Jaguar Growth Partners, Greystar Real Estate Partners, Macquarie Capital, SURA Asset Management and others. REGISTER for the Real Estate program here.
LAVCA Week (September 24-27, 2018) comprises a series of programs and events for private capital investors from Latin America and around the globe, such as fund managers, institutional investors, family offices, development finance institutions, sovereign wealth funds, fund of funds, corporates, and secondaries.
In addition to the Real Estate afternoon, activities are organized around two programs: the LAVCA Summit & Investor Roundtable Private Equity Program (September 24-26) and the LAVCA Venture Investors Annual Meeting (September 27).
The 2018 LAVCA Week agenda also includes a separate program exclusive to family offices (September 24), an LP-only breakfast hosted by ILPA (September 26), and NEW IN 2018, a half day ILPA Institute Workshop (September 27) for pension funds, insurance companies, and other qualified institutional investors.
Contact Leah Galamba with program and registration-related questions.
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Private Equity News
ACON Investments and Humus Capital Acquire Argentina’s Biosidusm
(Press Release) ACON Investments in partnership with Humus Capital Partners have acquired a majority stake in Biosidus and Biosidus Farma (collectively, "Biosidus"), Argentina's largest manufacturer and distributor of biosimilar pharmaceuticals. Read more
Neuberger Berman Acquires Stake in Brazilian Education Company Uniasselvi (em português)
(Valor Econômico) Global asset manager Neuberger Berman acquired a 25% stake in Uniasselvi, a Brazilian distance-learning education institution. This transaction represents a partial exit for private equity firms The Carlyle Group and Vinci Partners, which made a joint control investment in Uniasselvi in 2016. Read more
Vinci Partners To Acquire Brazilian Franchise of Domino’s Pizzerias (em português)
(Valor Econômico) Vinci Partners reached an agreement with Brazil’s group Trigo to acquire the local franchise of Domino's pizzerias. Read more
Riverwood Capital Makes Undisclosed Investment in Chilean SaaS Nubox
(Press Release) Riverwood Capital made an undisclosed investment in Chilean SaaS Nubox. This is Riverwood Capital’s second investment in the Chilean firm. Nubox recently acquired Argentinean SaaS Colppy as part of its regional expansion. Read more
Ardian Extends LatAm Reach with Office in Chile)
(Press Release) Private investment firm Ardian has established a new office in Santiago, Chile. The firm plans to strengthen relationships with its Latin American LPs, as well as to continue looking for investment opportunities in the region, and also explore secondary deals from Latin American sellers. Read more
Abraaj Holdings, Abraaj Investment Management, and Colony Capital Successfully Agree on Transaction
(Press Release) Abraaj Holdings, Abraaj Investment Management (together “the Group”), and Colony Capital successfully reached an agreement on the principal terms for the sale and purchase of the Group’s Latin America, Sub Saharan Africa, North Africa, and Turkey Funds management business, and the Group’s Limited Partnership interests in the underlying Funds, along with staff in the eight offices being transferred under the terms of the deal. Read more
CPPIB Announces R$500m Equity Target for Goodman Brazilian Logistics Partnership
(Press Release) CPPIB announced a R$500m equity target for a 20% interest in the newly established R$2.5b Goodman Brazil Logistics Partnership to invest in prime logistics and industrial assets in São Paulo and Rio de Janeiro. The Goodman Brazil Logistics Partnership also includes global investors APG, First State Super, and GIC. Read more
IDB Invest Commits US$10m to Brazil’s Bozano Investimentos
(Press Release) IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, committed US$10m to Bozano Investimentos new private equity fund, Bozano Growth Capital Fund. The Fund will invest growth capital in family-owned or family-controlled midsized companies with high growth potential operating in Brazil. Read more
LIV Capital and Temasek Acquire Minority Stake in Mexico’s Grupo Diagnóstico Proa (en español)
(El Financiero) LIV Capital and Singaporean sovereign wealth fund Temasek have acquired a 32% stake in diagnostics healthcare company Grupo Diagnóstico Proa, owner of Laboratorios Chopo. The transaction is subject to the approval of Mexico’s Federal Economic Competition Commission (COFECE). Read more
PC Capital Management Completes Divestment from Mexico’s Grupo Filoa
(Press Release) Mexican growth equity impact investment firm PC Capital Management announced it has completed the divestment of Grupo Filoa, achieving an IRR of 80% in two years. Read more
Allianz Global Investors Closes First Infrastructure Investment in Latin America
(IREI) Allianz Global Investors made an investment into the term refinancing of El Encino – La Laguna pipeline, an operating natural gas pipeline of more than 476 kilometers in central Mexico, sponsored by Fermaca. The refinancing structure amounted to more than US$800m of credit facilities, including a US$255m fully amortizing bank term loan and a more than 20-year fully amortizing US$450m bond. This transaction is the first investment under AllianzGI Infrastructure Debt’s expansion into Latin America initiated in 2018. Read more
EMR Capital To Buy Chilean Copper Mine Cerro Colorado (en español)
(Diario Financiero) BHP announced that it reached a sale agreement with Australian PE firm EMR Capital for the sale of its Cerro Colorado copper operation, located in the Atacama Desert in Chile. The transaction, which will exceed US$200m, is expected to close in Q3 2018. Read more
Alloy Merchant Finance Makes Follow-on Investment in Mexican Food Manufacturer Dysal
(AMEXCAP) Alloy Merchant Finance made a follow-on mezzanine investment in Dysal, a Mexican manufacturer of prepared foods and sweet bread, to expand the company’s operations in the US. Read more
Discovery Americas Invests MX$662m in Mexican Non-Bank Lending and Leasing Institution Arrenda+
(Press Release) Mexican PE firm Discovery Americas has reached an agreement to invest MX$662m (US$32.5m) in Arrenda+, a non-bank lending and leasing institution specialized in SMEs looking for alternative sources of funding. The deal is still pending regulatory approval from the Mexican Anti-Trust Commission (COFECE). Read more
Enel Acquires 21% of LatAm Fiber Optic Network Operator Ufinet International
(Press Release) Italian multinational power company Enel acquired a 21% stake in fiber optic network operator Ufinet International, which operates in 14 countries in Latin America, from private equity firm Cinven for EUR150m. Read more
Principia Capital Partners Seeks to Raise US$400m to Invest in Brazilian Mid-Sized Businesses (em português)
(Valor Econômico) Principia Capital Partners, a spin-off of Victoria Capital Partners, seeks to raise US$400m for its debut private equity fund aimed at Brazilian mid-sized businesses. Read more
H.I.G. Capital Invests in Brazil’s Grupo Meridional
(Press Release) H.I.G. Capital has completed a strategic investment in Grupo Meridional, which oiperates five hospitals in the State of Espírito Santo in Brazil. Read more
Alloy Merchant Finance Makes US$2m Investment in Mexican Textile Manufacturer Grupo Yadatex (en español)
(AMEXCAP) Alloy Merchant Finance made a mezzanine investment of approximately US$2m in Grupo Yadatex, a Mexican company that designs, manufactures and markets textile products for the school season, under licenses and its own brands. Read more
Balam Fund Acquires Dhamma Energy’s Mexican Solar Project
(PV Tech) Balam Fund, which is jointly managed by BK Partners and the Rohatyn Group, has acquired a 37MW ready-to-build solar project located in the Mexican state of San Luis Potosi from Spanish renewables company Dhamma Energy. Read more
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 Venture Capital News
Vostok Emerging Finance Leads US$25m Series C in Mexican Fintech Konfio
(Press Release) Vostok Emerging Finance led a US$25m Series C investment in Konfio, a Mexican lending platform for small businesses, with participation from existing investors KaszeK Ventures, Quona Capital, QED Investors and the IFC, among others. Read more
LEAP Global Partners Leads US$8.5m Series A in Fintech Listo
(PE Hub) LEAP Global Partners led a US$8.5m Series A investment in Listo, a consumer financial services startup offering insurance products and loans to US-based Latinos, with participation from Mexico Ventures and Continental Advisors. Read more
Dalus Capital and the IFC Make US$10m Investment in Mexican eFactor Network and eFactor Diez
(Press Release) Dalus Capital and the IFC made a US$10m investment in Mexican fintech eFactor Network and financial intermediary eFactor Diez. Read more
monashees+ Leads R$19m Investment in Brazilian Used Car Marketplace Volanty (em português)
(E-Commerce News) monashees+ led a R$19m investment in Volanty, a used car marketplace, with participation from Canary, which led a R$2.5m seed investment in 2017. Read more
Brazil’s B3 Makes Capital Commitment to Redpoint eVentures’ New Fund (em português)
(Valor Econômico) Through its Foresee innovation program, Brazilian stock exchange B3 made an undisclosed investment in Redpoint eventures’ new fund, which is targeting US$130m in capital commitments. Read more
SP Ventures Invests R$4.5m in Brazilian Agtech Speclab (em português)
(Valor Econômico) SP Ventures made a R$4.5m investment in SpecLab, a soil fertility analysis solution that spun out of Brazilian agriculture lab IBRA (Instituto Brasileiro de Análises). Read more
IGNIA Leads Undisclosed Investment in Mexican Digital Fashion Marketplace Trendier
(Press Release) IGNIA, Antai venture Builder, Pedralbes Partners, Bonsai Venture Capital, and Banco Sabadell made an undisclosed investment in Trendier, an affordable fashion platform operating in Mexico and Colombia. Read more
Confrapar Makes R$12.8m Investment in Brazilian Mobile Data and Ad Firm Hands Digital S/A (em português)
(Meio & Mensagem) Confrapar made a R$12.8m investment in Hands Digital S/A, a mobile data and advertising firm that spun out from an acquisition by Dentsu Aegis Network in 2016. Read more
Criatec 3 Makes R$6m Investment in Brazilian Cybersecurity Startup Bluepex (em português)
(Fusões & Aquisições) BNDES’ Criatec 3, managed by Inseed Investimentos, made a R$6m investment in Bluepex, a Brazilian cybersecurity solution. Read more
Capital Deportivo Leads Undisclosed Investment in Fitpass Mexico (en español)
(AMEXCAP) Capital Deportivo, an entrepreneurial capital fund dedicated to sports in Mexico, led an undisclosed investment in Fitpass Mexico. Read more
Canary Makes R$1m Investment in Brazilian Beauty Salon Management Platform LaPag (em português)
(Startupi) Canary made a R$1m investment in LaPag, a Brazilian beauty salon management platform, with participation from angel investor Renato Feitas. Read more
Criatec 3 Invests R$3m in Brazilian Livestock Platform Intergado (em português)
(Valor Econômico) Criatec 3, managed by Inseed Investimentos, made a R$10m investment in Intergado, a Brazilian precision livestock platform. Read more
Confrapar and Travel Capitalist Lead R$3m Investment in Brazilian Private Aviation Marketplace Flapper (em português)
(Startse) Confrapar’s aerospace fund, Fundo PE1 Aerotec, and Travel Capitalist Ventures led a R$3m investment in Flapper, a Brazilian private aviation marketplace. Flapper previously raised funding from Brazilian accelerator ACE and angels. Read more
Angel Ventures Peru Leads US$2m Investment Round in Peruvian Insurtech SeguroSimple
(Press Release) Angel Ventures Peru, Trefilia Capital, Quinvest and other family offices made a US$2m investment in SeguroSimple, a Peruvian digital insurance broker. Read more
Cedro Capital Makes Undisclosed Investment in Brazilian Edtech Kanttum (em português)
(Segs) Cedro Capital made an undisclosed investment in Kanttum, a Brazilian edtech platform for professor training and development. Read more
Brazilian B2B e-Commerce Gaveteiro Receives R$15m Investment Round (em português)
(E-Commerce News) Alberto Hauser of Grupo ABX, Valiant Capital, Thomasnet, and Battery Road Digital Holdings made a R$15m investment in Gaveteiro, a Brazilian B2B ecommerce platform. Read more
Wayra and Angel Investors Make Seed Investment in Peruvian IT Startup Quantum Talent (en español)
(LexLatin) Peruvian IT startup Quantum Talent SAC received a seed investment round of US$397,500 from Wayra Peru and undisclosed angel investors. Read more
Brazilian Healthcare Startup Labi Recieves Undisclosed Investment (em português)
(Exame) Labi, a Brazilian clinical lab analysis startup, raised an undisclosed investment from investors including Luís Terepins, Eduardo Vidigal, and Marcus Vinícius da Costa. Read more
Kick Ventures Makes Undisclosed Investment in Brazilian Healthtech Startup Anestech (em português)
(StartSe) Kick Ventures made an undisclosed investment in Anestech, a Brazilian startup working on anesthesiology technology. Read more
Yield Lab Launches LatAm Accelerator and Invests in 3 Agtech Startups
(Agfunder News)The Yield Lab has launched a Latin American program based in Buenos Aires and will take on six startups for the first cohort. The accelerator has so far invested in local agtechs Agree Market, Kilimo, and Eiwa. Read more
Colombian Corporate Learning Platform Ubits Receives US$120k Investment from Y Combinator (en español)
(Portafolio) Ubits, a Colombian corporate learning platform, will receive a US$120k investment from Y Combinator as part of its Spring 2018 cohort. Read more
Alsagra Ventutres, Ajba Software, and Intelectix Invest in Mexican Cloud E-commerce Platform Muventa (en español)
(LexLatin) Alsagra Ventures, Ajba Software and Intelectix made an undisclosed investment in Muventa, a Mexican cloud ecommerce platform for small businesses. Read more
Chile’s Fen Ventures Targets US$21m for Fund II (en español)
(LexLatin) Chilean VC Fen Ventures is preparing to raise a US$21m Fund II, anchored by CORFO. Read more
Bossa Nova Investimentos Launches LatAm-Focused Global Securitized Token BR11 (em português)
(E-Commerce News) Bossa Nova Investimentos launched a global securitized token, BR11, focused on Latin American businesses. Founding Partner Pierre Schurmann says the goal is to attract foreign investment to Brazil and plans to raise US$11-20m to invest in 11 startups. Read more
Unnamed Investors Make R$1.5m Investment in Brazilian Career Platform WallJobs (em português)
(Startupi) Unnamed investors made a R$1.5m investment in WallJobs, a career platform for young Brazilians. Read more
Zoox Receives Undisclosed Investment (em português)
(Revista Hotéis) Zoox, a big data technology startup originally founded in Brazil and with clients in the hospitality sector, received an undisclosed investment to expand and internationalize its operations. Read more
Angel Investors Make R$500k Investment in Brazilian Urban Moblility Startup Lady Driver (em português)
(DCI) Unnamed investors made a R$500k investment in LadyDriver, a Brazilian rideshare startup for female passengers. Read more
Chilean Entrepreneur Association Launches CLP$500m Fund to Support Entrepreneurs (en español)
(Economia y Negocios) The Chilean Entrepreneur Association (ASECH) announced a new CLP$500m fund to support the local startup ecosystem. Read more
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 Real Estate News
Sordo Madaleno Goes for MXN$7.5b on Mexico’s BMV (en español)
(El Economista) Mexican real estate firm Grupo Sordo Madaleno plans to list a MXN$7.5 billion CERPI (Certificado de Proyectos de Inversión) on Mexico’s Stock Exchange (BMV) to invest in office, retail, hospitality, industrial, residential, and mixed-use projects. Read more
OLX and Properati Join Forces in Latin America
(Press Release) OLX, a global classifieds marketplace backed by Naspers, and Properati, a real-estate marketplace with operations across Latin America, will merge its operations in Argentina and 13 other countries in the region. Properati will continue to operate independently in Brazil, Chile and Mexico. Previous venture capital investors in Properati include NXTP Labs and NEVEQ. Read more
Grupo IGS To Purchase Mexican Industrial Portfolio Frontera (en español)
(AMEXCAP) Real estate developer and fund manager Grupo IGS is set to purchase a Mexican industrial portfolio dubbed Frontera, which consists of 37 warehouses located across the Mexico-US border in the cities of Tijuana, Ciudad Juárez, Reynosa, and Matamoros. The purchase is subject to the approval of the Federal Economic Competition Commission (COFECE). Read more
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| LAVCA Members receive a discount on select events. For information on member discounts, contact Caitlin Mitchell. |
Latin American Venture Capital Association
589 8th Avenue, 18th Floor
New York, NY 10018
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