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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.
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LAVCA spoke with Scott Sobel, Co-Founder & Managing Partner of Valor Capital Group, about the opportunity for U.S./Brazil cross-border VC investment and how the tech opportunity in Brazil compares to China.
Sobel also discussed the exit environment in Brazil:
The tech sector has been the most active M&A sector for the last three years in Brazil, making up around a fifth of the US$78b total deal volume. Initial Public Offerings of Brazilian tech companies is another trend to watch, and 2018 kicked off on a positive note with PagSeguro’s successful launch on the NYSE, having raised about US$2.27b (the largest IPO since Snap in March).
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LAVCA welcomes 18 new member firms to the association including:
FULL MEMBERS
- Agrega Partners
- Ardian
- Dalus Capital
- DILA Capital
- Equity International
- Finnovista Frontier Mexico
- GP Investments
- Grupo Supervielle
- Invermaster Ventures
- Kentia Partners
- MGM Innova Capital
- Stiler
- Temasek Holdings
- The Venture City
- The Yield Lab LatAm
ASSOCIATE MEMBERS
- Apex Brasil
- Candido Martins Advogados
- Winston & Strawn
As a non-profit association, Member participation and support is invaluable to the organization's success. A full list of LAVCA's Members is available here. For more information on becoming a member, visit LAVCA's website.
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On May 9, 2018, the Argentine Congress passed the Productive Financing Law. This law introduces significant reforms to Capital Markets Law No. 26,831 with the objective of achieving a modern financial regulatory framework that contributes to the development of the country’s economy.
Additionally, the newly-passed capital markets reform bill will loosen restrictions on some funds investing in the country. The change will open the country to a wider range of more risk-averse investment funds. The bill allows closed-end mutual funds to invest in alternative assets like real estate or farmland, while requiring them to raise funds through a public offering to boost transparency, according to Reuters.
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Private Equity News
KKR to List Debut CERPI on Mexico’s BMV (en español)
(El Economista) KKR is preparing to list its first CERPI (Certificado de Proyectos de Inversión) on the Mexican Stock Exchange (BMV). The CERPI will make private equity and private credit investments, and will also finance energy, infrastructure, and real estate projects in Mexico and abroad. Read more
Blackrock & Ashmore Invest in Colombia’s 4G Sisga Project (en español)
(Dinero) The National Development Bank (FDN) of Colombia closed US$197m in financing for the 4G Transversal del Sisga road project, which runs across the Casanare, Boyacá, and Cundinamarca states. The financing includes the participation from senior infrastructure debt funds managed by BlackRock and Ashomre-CAF. Read more
Nexxus Completes Divestment from Maak Arca Holding
(Press Release) Nexxus announced the completed divestment from Maak Arca Holding, S.A.P.I. de C.V., derived from a spin-off and sale of the natural stone and wood division. Read more
InfraRed Invests in Combined-Cycle Power Plant in Mexico
(Press Release) InfraRed Infrastructure Fund V has acquired a 35.5% equity interest from Macquarie Capital in the Norte III project, a 907MW combined-cycle gas turbine project, currently under construction near Ciudad Juárez, Mexico. Read more
Pegasus Exits Peruvian Fuel Importer Pure Biofuels Del Peru
(Press Release) US private equity firm Pegasus Capital Advisors has sold its stake in Pure Biofuels Del Peru, the third largest fuels importer in Peru, to a subsidiary of Valero Energy Corporation. Read more
responsAbility Investments AG Exits Peru’s Microfinance Provider Mibanco
(Press Release) responsAbility Investments has fully exited from its indirect equity investment in MiBanco, Latin America’s largest microfinance bank by asset size, through a divestiture to majority shareholder Credicorp Ltd. Read more
Grupo Renovables Agrícolas Raises MXN$800m Through CKD (en español)
(Sentido Común) Grupo Renovables Agrícolas, a subsidiary of Renewable Resources Group, has raised MXN$800m through the initial issuance of a MXN$4b CKD vehicle on the Mexican BVM. This is the first agribusiness-focused CKD in Mexico. Read more
EIG Announces US$758m Financing for Chilean Solar Power Company Cerro Dominador
(Press Release) Chile’s Cerro Dominador announced the signing of the financing for its Concentrated Solar Power plant located in Chile. The US$758m financing was subscribed by various lenders including Natixis, Deutsche Bank, Société Générale, ABN AMRO, Santander, Commerzbank, and BTG Pactual, as well as other institutional investors. Read more
US Capital to Invest R$8m in Brazilian SMEs (em português)
(Exame) Florida-based private equity firm US Capital Management plans to invest up to R$8m to become a partner in 34 Brazilian small and medium-sized enterprises by the end of 2019. Read more
Nexxus Capital Raises Debt CKD (en español)
(AMEXCAP) Mexican private equity firm Nexxus Capital held a first close for its Nexxus Mezanine Fund I, a CKD vehicle that is targeting MXN4b in capital commitments. Nexxus Mezanine Fund I will make preferred, senior, mezzanine, structured and/or convertible debt investments in Mexican midsized companies. Read more
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Venture Capital News
SP Ventures Set to Launch Latin American Agtech Fund (em português)
(DCI) SP Ventures is preparing to launch its second venture capital fund, which will exclusively focus on agtech opportunities. The firm is also expanding its geographic focus outside Brazil, and it is planning to invest in up to 20 startups across Latin America. Read more
Cventures Primus Leads Undisclosed Series A Investment in Brazil’s Wevo (em português)
(Baguete) Cventures Primus and Omnilink founder Cileneu Nunes made an undisclosed Series A investment in Wevo, a Brazilian ecommerce cloud integration platform. Read more
BID Invest Commits $US5m to Argentinean Fintech Startup MONI Online (en español)
(Press Release) BID Invest made a US$2m investment in Argentine fintech MONI Online. Read more
ALLVP Invests in Chilean Crowdlending Platform Cumplo
(Press Release) ALLVP has made an undisclosed investement in Chilean crowdlending platform Cumplo. The fintech startup will use the capital to expand to Mexio. Read more
IGNIA Makes Undisclosed Investment in Mexican IT Startup Virket
(Press Release) IGNIA made an undisclosed investment in Virket, a Mexican provider of performance management solutions for small businesses. Read more
Spain’s Banco Sabadell Invests in Mexican Mobile Fashion Marketplace Trendier (en español)
(El Economista) Banco Sabadell made an undisclosed investment in Trendier, a Mexican peer-to-peer marketplace for women’s clothes. Read more
Angel Ventures Fund Prepares Debut CKD on Mexico’s BMV (en español)
(Expansión) Angel Ventures seeks to raise MXN$1b from Mexican Afores for its debut CKD vehicle, which will be listed on Mexico’s stock exchange (BMV). Read more
Parallell18 Ventures Invests in Fintech and Insurance Startups from Puerto Rico and Argentina
(Press Release) Puerto Rico’s Science, Technology and Research Trust (PRSTRT) will invest US$225k through Puerto Rican accelerator Parallel18’s follow on fund in Abartys Health, a local insurance startup, and Quiena, an Argentine fintech startup. Read more
BTG Pactual Launches Brazilian Startup Accelerator BoostLab (em português)
(Valor Económico) BTG Pactual launched BoostLab, an accelerator to scale up Brazilian startups with existing revenue and clients. The first cohort includes fintechs Liber Capital and F(x) (both backed by e.bricks Ventures), and Neurotech; as well as Clicksign, Zigpay and agtech startup Agronow (backed by SP Ventures). Read more
Trebol Capital Leads MXN$3.2m Investment in Mexican Photo-Printing Startup Piktia (en español)
(Expansión) Trebol Capital led a MXN$3.2m investment in Piktia, a Mexican photo-printing service, which included a MXN$500k investment by angel network Ark Fund. Piktia raised an additional MXN$250k via Crowdfunder. Read more
Cemex Ventures Invests in Mexican Accident Prevention Startup PRYSMEX
(El Financiero) Cemex Ventures set to invest for the fourth time in Mexican startup PRYSMEX, an app that helps prevent workplace accidents through IoT and collection of data in real time. Read more
Cedro Capital Invests US$2.5m in Brazilian Healthcare Startup iMedicina (em português)
(Istoé Dinheiro) Cedro Capital made a US$2.5m investment in iMedicina, a Brazilian healthtech client management platform. Read more
Aurus Leads US$1.4m Investment in Chilean Real Estate Tech Startup Capitalizarme (en español)
(El Mercurio) Aurus Capital led a US$1.4m investment in Capitalizarme, a real estate investment platform with offices in Santiago de Chile and Denver, Colorado. Read more
Unilever Brazil Launches First Worldwide Startup Accelerator Lever UP
(Baguete) Unilever Brazil has launched Lever UP, the company’s first worldwide startup acceleration program. Lever UP will be led by corporate accelerator Liga Ventures, targeting startups in the IT, supply chain, e-commerce, home care, and food sectors. Read more
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Real Estate News
H.I.G. Capital Acquires Parque Ana Costa in São Paulo, Brazil
(Press Release) Global private equity firm H.I.G Capital has announced the acquisition of AAA office building Parque Ana Costa with 17,997 square meters of space, located in Santos, São Paulo, Brazil. Read more
Trinity Investments, Oaktree, & Walton Street Capital Acquire Los Cabos Hilton
(Press Release) Trinity Investments, Walton Street Capital, and Oaktree Capital Management have announced the formation of a joint venture and acquisition of the Hilton Los Cabos Beach & Golf Resort in Mexico. Read more
Cerberus Seeks to Buy Distressed Real Estate Assets in Brazil (em português)
(Valor Econômico) U.S. private investment firm Cerberus Capital Management is seeking to enter the Brazilian real estate market by acquiring distressed real estate backed loans, foreclosed properties, and excess inventory built by local developers. Read more
Blackstone Sells Real Estate Debt Portfolio to Credit Suisse Mexico (en español)
(LexLatin) MREIT, a real estate development fund sponsored by Credit Suisse Mexico has obtained financing from HSBC México for more than US$350m. The funds will be used by Credit Suisse Mexico to acquire a real estate debt portfolio valued at US$621m and that belongs to BRE Debt México II, a subsidiary of Blackstone Group. Read more
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2018 ABVCAP Conference
Hosted by ABVCAP | June 4-5, 2018 | São Paulo, Brazil
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Mexico PE Day
Hosted by AMEXCAP | June 6-7, 2018 | New York, NY
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Proptech Latin American Summit
Hosted by Marketing in Real Estate | June 7, 2018 | Santiago de Chile, Chile
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SuperReturn Emerging Markets
Hosted by KNect365 | June 27 - 29, 2018 | Amsterdam, Netherlands
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GIIN Investor Forum
Hosted by GIIN & PEI | October 30-31, 2018 | Paris, France
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Inside Private Equity: Dealmaking in Latin America
Hosted by LAVCA & MIT | November 12-15, 2018 | Miami, Florida
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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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