Latin American Private Capital Update - April 28, 2020 Latin American Private Capital Update April 28, 2020
May 12, 2020
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LAVCA Private Capital Update
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.

Latest Industry Headlines

Private Equity News
Private Equity News

Advent-Backed YDUQS Acquires Adtalem Brasil...

Venture Capital News
Venture Capital News

Canary Leads a R$3.2m Round in Clarke Energia...

Real Asset News
Real Assets News

Patria Infrastructure Raises US$1.6b...


ACCESSS LAVCA’s Annual VC/Tech Report

VC Tech Report picture

Thank you to the 900+ participants who joined the recent LatAm VC/Tech: Update On Data & Trends virtual discussion with Silicon Valley Bank on May 5, 2020, and to our esteemed panelists: 

Francisco Alvarez-DemaldeRiverwood Capital‘s Co-Founder & Managing Partner; 
Julio Vasconcellos
Founding Partner of Canary and Managing Partner of Atlantico;
Andy Tsao
SVB‘s Managing Director;
Susana Garcia-Robles, LAVCA's Executive Advisor

Facilitated by Julia Figueiredo
, SVB's Director of LatAm, the meeting kicked off with data insights from Julie Ruvolo, 
LAVCA's Director of Venture Capital.

Listen to the full recording here.

NOW AVAILABLE FOR DOWNLOAD: LAVCA's Annual VC/Tech Report: Inside The 4th Consecutive Peak Year cites 2019 VC investment data, highlighted transactions, and sector and country trends.

2019 proved to be a record breaking year for Latin America venture capital on many fronts:
VC FUNDRAISING (in dollar terms) totaled US$1.08b in partial and final fund closes;
VC INVESTMENT (in dollar terms) for the region rose to US$4.6b;
MEGA-ROUNDS 18 disclosed transactions over US$50m; 11 transactions over US$100m;
SEED/INCUBATOR transactions reported a record year in Argentina, Colombia, and Mexico.

Venture investment in Latin America has more than doubled every year from 2016 to 2019, tracing a steady growth trajectory that will certainly be interrupted by the 2020 COVID-19 global health pandemic in ways foreseen and unforeseen.

The resilience and resourcefulness of Latin America’s entrepreneurs will be tested in the year ahead as the need for cost-effective solutions to highly complex problems comes into sharper view.

DOWNLOAD LAVCA’s Annual VC/Tech Report.


COVID-19 LAVCA Investor Resources & Updates

Community Ideas

LAVCA continues to gather relevant resources and updates for private capital investors active in Latin America in light of how the spread of COVID-19 might affect portfolio companies, investor relations, pipeline building, and more.

This week, insights from LAVCA member firms in Latin America include:

Riverwood Capital joined forces with players in the region to support "Conectados", a relief initiative for portfolio companies in Latin America utilizing a tech platform to help healthcare workers access discounts and benefits, and to facilitate donations to the Red Cross for employees of participating companies, with a match from their employer.

 Advent International's Advent Global Relief Fund (AGRF) channels resources to local organizations that are leading the fight against COVID-19 to support the healthcare system response to the crisis, and vulnerable populations affected by the economic slowdown.

SoftBank shared insights with LAVCA on the  "Alibaba Effect" in Latin America. The statement, based on a communication to their stakeholders, compares the current crisis with the resiliency of the Chinese giant during the 2003 SARS pandemic when technology innovation and adaptability led to the launch of new companies. SoftBank also shared the fund's updated investment outlook. 

AC Ventures shared a review of the current state of the global startup ecosystem and sheds light into challenges that both founders and investors will have to face moving forward.

ALLVP shared a statement on the fund’s view on the gradual recovery of social and economic activity in Latin America and a reframed sub-sector focus adapted to the new reality after the COVID-19 crisis.

Access additional resources on our website here.

Have relevant information you would like to share? Please email



Fiduciary Duty Image

The sudden and wide-ranging impact of COVID-19 has resulted in companies facing unprecedented circumstances and challenges. Portfolio companies backed by private equity are no exception and the pressure on such firms and their boards of directors to respond to the crisis is high.

While the nature of a director’s fiduciary duties in Latin America has not changed as a result of COVID-19, Thais Garcia, Partner at Clifford Chance, outlines some best practices for private equity appointed directors to comply with their fiduciary duties that align with helping their portfolio companies navigate this challenging environment.

Directors should be aware of any specific regulations that may apply to the company, for example, to publicly held companies or companies in regulated sectors such as financial services, telecommunication, infrastructure, energy, pharmaceuticals, and insurance. There may be a need to involve regulators in decisions or to keep them informed and consulted.

A recent example of the benefits of early engagement with regulators was seen in the utilities sector in Chile. Due to the major business disruptions caused by the COVID-19 pandemic, public opinion put pressure on both Chilean utilities companies and the government to provide relief to households in connection with the payment of utility bills. Rather than waiting for the enactment of potentially more stringent and onerous regulation by the Chilean Parliament, utility companies decided to engage in discussions with the government to reach an agreement on a relief plan, which was ultimately successful.

READ the article here.


Latest Industry News

Private Equity News
Private Equity News

Advent International-Backed YDUQS Finalizes US$424m Acquisition of Brazilian Workforce Solutions Provider Adtalem Educacional do Brasil (em português)

(Yahoo Finanças) Advent International-backed Brazil-based educational group YDUQS has finalized the acquisition of Brazilian workforce solutions provider Adtalem Educacional do Brasil from its parent company, US-based Adtalem Global Education, for US$424m. Read more

GIC, Farallon Capital, and HPS Investment Partners Acquire Bain Capital’s Stake in Atento

(Bloomberg) GIC, Farallon Capital Management, and HPS Investment Partners have agreed to acquire Bain Capital’s shares in Latin America CRM and BPO company Atento in exchange for their notes. The debt-for-equity deal will give HPS a 25% stake in Atento, while GIC and Farallon will own 22% and 15%, respectively. The deal is subject to regulatory approvals in Brazil and Mexico. Read more

Evolvere Capital Acquires Dental Clinic Network Dentix Colombia (en español)

(La República) Private equity firm Evolvere Capital has acquired Colombia-based dental clinic network Dentix Colombia for an undisclosed amount. Read more

Venture Capital News Venture Capital News

Canary Leads a R$3.2m Round in Electricity Bills Manager Clarke Energia (em português)

(Startupi) Canary led a R$3.2m round in Clarke Energia, a Brazilian startup managing electricity bills for SMEs, with participation from Fundação Estudar Alumni Partners. Read more

Mountain Nazca Exits Kavak Through a Sale to SoftBank and General Atlantic (en español)

(Press Release) Mountain Nazca exited Kavak, a Mexican marketplace for used cars, through a secondary sale to SoftBank and General Atlantic. KaszeK Ventures invested previously. Read more

TheVentureCity Leads a US$3m Series A in SimpliRoute

(Crunchbase) TheVentureCity led a US$3m Series A in SimpliRoute, a Chilean logistics intelligence platform, to strengthen its presence in Mexico, Colombia, and Uruguay. ChileGlobal Ventures, Wayra Chile, and 500 Startups invested previously. Read more

Canary, Atlantico, and Big Bets Lead a R$7.5m Round in Festalab

(Contxto) Canary, Atlantico, and Big Bets led a R$7.5m round in Brazilian event planning platform Festalab. Read more

Real Asset News Real Asset News

Patria Infrastructure Raises US$1.6b

(IPE Real Assets) Florida State Board of Administration (SBA) has agreed to commit US$100m to Patria Investimentos Infrastructure Fund IV, a fund managed by Brazil-focused private equity firm Patria Investimentos. The vehicle, targeting US$2.8b, has secured US$1.6b in commitments to date. Read more

White River Renewables Acquires Solar Projects

(Power Finance & Risk) White River Renewables, a joint venture between U.S. private equity firm Riverstone Holdings and Switzerland firm White Summit Capital, has acquired two Mexican solar projects from Jinko Solar. The joint venture acquired the 130 MV Viborillas project in Aguascalientes and the 25 MW San Ignacio project in Yucatán. Read more

Ardian Acquires 49% Stake in Tacna Solar & Panamericana Solar (en español)

(SolarPack) Ardian Infrastructure acquired a 49% stake in two Peruvian solar power plants, namely Tacna Solar and Panamericana Solar, from Spanish renewable energy company SolarPack, which retains a controlling stake. Read more

LAVCA & Industry Events
AMEXCAP Cumbre de Capital Privado 2020
Hosted by AMEXCAP | June 29-July 1, 2020 | Mexico City, MX
Hosted by LAVCA | September 14-17, 2020 | New York
Congresso ABVCAP 2020
Hosted by ABVCAP  | October 13-15, 2020 | Rio de Janeiro, Brazil
LAVCA Members receive a discount on select events. For information on member discounts, contact Catalina Santos.

The Association for Private Capital
Investment in Latin America
589 8th Avenue, 18th Floor
New York, NY 10018

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