Latin American Private Capital Update - April 6, 2021Latin American Private Capital Update April 6, |  | | 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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NOW AVAILABLE FOR DOWNLOAD: 2021 LAVCA Industry Data and Analysis. The report includes data and insights on fundraising, investment and exit activity from the full year in 2020.
Members receive exclusive access to a summary of key trends and y-o-y comparisons, highlighted deals as well as a 14-tab Excel file with graphs on fundraising, investments, exits and breakouts for the Andean Region, Argentina, Brazil and Mexico.
NEW in 2021! For the first time, the data includes private credit activity, as well as a listing of 300+ notable publicly disclosed transactions and fund closings. In addition, reported investment totals now include contributions by co-investors, as well as acquisition or project financing.
KEY TAKEAWAYS FROM 2020:
> Fundraising: Despite difficult macroeconomic conditions, fundraising closed the year at USD7b raised across 51 fund closings for LATAM dedicated funds.
> Investments: 2020 was a record year for investments overall with USD16.3b invested across 653 deals.
> Exits: It was a record year with USD11.1b divested across 105 exits, largely driven by public markets activity.
The 2021 Industry Data & Analysis was written and prepared by LAVCA Research Director Miguel Algarin and Research Analyst Emanuel Hernandez. Contact the research team for data-related requests at research@lavca.org.
ACCESS the full report here (the USD795 charge is waived for logged in members during checkout. Members can create a login here). | | |
| LAVCA, in collaboration with Latin American Tech Growth Coalition member Silicon Valley Bank, invites you to participate in VC Trends in Latin America: A Year into the Pandemic, a virtual discussion featuring the launch of LAVCA’s Annual VC/Tech Report.
WHEN: Thursday, April 22, 2021
TIME: 11:30AM EDT (8:30AM PDT)
WHERE: Webcast
Panelists include:
> Nicolás Szekasy, LAVCA Chair, Co-Founder & Managing Partner, KASZEK
> Eric Santos, CEO, RD Station
> Andy Tsao, Managing Director, Global Gateway, SVB
> Julia Figueiredo, Director of LatAm, SVB
> Julie Ruvolo, Director of Venture Capital, LAVCA
The program will cover top sectors of growth, key deals in the major markets, new unicorns, notable exits and M&A, and the rise of tech SPACS in LatAm, followed by a panel discussion with key players on the future of the industry in the region.
QUESTIONS? Please contact Julia Figueiredo.
ACCESS past editions of LAVCA VC/tech reports. | | |
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READ the latest deal case featuring Vinci Partners’ investment in Brazil-based medical diagnostics company Diagmax.
Despite public access to a universal healthcare system called the Unified Health System (SUS - Sistema Único de Saúde), private sector spending on healthcare outpaces the public sector in Brazil. In 2018, private spending accounted for 58.2% of health expenditure in the country, compared to an average of 38.5% among members of the OECD.
Low private healthcare penetration rates coupled with an increase in the number of private health insurance beneficiaries in Brazil’s Northeastern region has created attractive opportunities for private health providers to expand in the region.
In December 2017, Vinci Partners, who has recently made an IPO on the Nasdaq (Ticker: VINP), saw the opportunity in medical diagnostics company Diagmax, based in Recife Pernabuco. Diagmax’s services include magnetic resonances, computed tomography, ultrasonography, x-rays, mammography, laboratory exams, colonoscopy as well as cardiological exams. Diagmax operates mainly in shopping malls, offering customers flexible hours seven days a week.
The third vintage of the Vinci Impact and Return PE strategy, Vinci Nordeste III, invested USD6.5m in Diagmax through a combination of equity and debt, which allowed the founders to minimize dilution.
 Vinci acted jointly with the management team to implement an action plan to strengthen the company’s cash position and reduce insolvency risk, given that medical imaging is a cash-intensive business with significant upfront investments and cash conversion cycles often exceeding two months."
A year and a half after Vinci’s investment in Diagmax, Brazilian listed medical diagnostics group Fleury approached the company regarding a possible acquisition to expand their operations in the Northeast. In September 2019, Fleury paid BRL80.4m. (USD19.4m) for the acquisition of 100% of shares in Diagmax, agreeing to pay an additional earn-out of up to BRL31.6m (USD7.6m) if specified milestones were achieved.
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| LAVCA, in collaboration with EMPEA, is pleased to announce the new Inside Private Capital series, a groundbreaking education training platform for GP and LP members.
LAVCA members are being given special consideration to participate in module one, Meeting LP Expectations on ESG, at the discounted rate.
This interactive, virtual training, targets the growing universe of managers committed to ESG outcomes.
The three-hour curriculum will be led by a practitioner faculty of LPs and GPs with deep expertise in ESG and ESG reporting.
Future modules of the Inside Private Capital series will be developed for the Latin American investor community under the LAVCA education team’s leadership.
To receive further information on the registration process, please contact education@lavca.org | | |
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Private Equity News
Carrefour to Acquire Advent-backed Grupo BIG for BRL7b (Press Release) Grupo Carrefour Brasil has agreed agreed to acquire Grupo BIG Brasil, a Brazil-based food retailer backed by Advent International, for BRL7b (~USD1.3b). The transaction is subject to approval. In 2020 Grupo BIG filed for an IPO. Read more
Vinci Partners Reaches BRL1b Final Close for Vinci Impacto e Retorno IV (Press Release) Vinci Partners has reached a BRL1b (~USD173m) final close for Vinci Impacto e Retorno IV. The vehicle will invest in medium-sized companies operating in the healthcare, education, retail, IT and food sectors in Brazil. Read more
GP Investimentos Partially Exits Centauro for BRL150m (em português) (Brazil Journal) GP Investimentos has partially exited Brazilian sporting goods retail chain Centauro by selling 10% of its stake in a block trade for BRL150m. Read more
Advent Sells Stake in Mexico’s Gayosso to Servicios Funerarios GG for USD49m (Global Legal Chronicle) Advent International has sold its stake in Mexico-based funeral services provider Grupo Gayosso to Servicios Funerarios GG for USD49m. Read more
Patria SPAC Files for USD250m IPO (Nasdaq) Patria Acquisition, a SPAC formed by Patria Investimentos targeting Latin American companies, has filed to raise up to USD250m in an IPO on the Nasdaq. Read more
Signal Capital Targets USD400m Secondaries Fund (Secondaries Investor) Brazil-based Signal Capital has targeted a USD400m fund focusing on the secondaries market. Read more
The Carlyle Group, Patria, Vinci Partners & Warburg Pincus Launch Instituto Órizon (em português) (Valor Econômico) The Carlyle Group, Patria, Vinci Partners and Warburg Pincus launched Instituto Órizon, an initiative which aims to apply private equity management skills to social projects. Read more
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 Venture Capital News
Alkeon Capital Leads USD150m Round for Uruguayan Cross-Border Payment Platform dLocal (TechCrunch) Alkeon Capital led a USD150m round for dLocal, a Uruguay-based cross-border payment platform, with participation from BOND, D1 Capital Partners and Tiger Global, at a reported USD5b valuation. Read more
TCV Leads BRL375m Series C for Brazilian Course Monetization Platform Hotmart (em português) (Startupi) TCV led a BRL375m Series C for Hotmart, a Brazilian monetization platform for online courses, with participation from Alkeon Capital. Read more
Mercado Libre, Globant and Riverwood Capital Invest USD50m in Argentine Edtech Digital House (TechCrunch) Mercado Libre, Globant and Riverwood Capital invested USD50m in Digital House, an Argentine platform providing technical education for developers, with follow-on from KASZEK. Read more
FTV Capital Leads BRL190m Series B for Brazilian Corporate Trust Platform Vortx (em português) (NeoFeed) US-based growth equity fund FTV Capital led a BRL190m Series B for Vortx, a Brazilian asset custody and issuance platform for corporate trusts. Read more
Ribbit Capital Leads USD26.7m Round for Brazilian Lending Platform Cora (TechCrunch) Ribbit Capital led a USD26.7m round for Cora, a Brazilian lending platform for SMEs, with participation from KASZEK, QED Investors and Greenoaks Capital. Read more
Vostok Emerging Finance, Dunross & Co and Atlant Fonder Invest USD7m in Credit Platform FinanZero (TechCrunch) Vostok Emerging Finance, Dunross & Co and Atlant Fonder made a USD7m follow-on investment in FinanZero, a Brazilian consumer credit marketplace. Read more
IFC and Goldman Sachs Lead BRL150m Round for Personal Credit Platform Open Co (em português) (Forbes) IFC and Goldman Sachs led a BRL150m round for OpenCo, a Brazilian unsecured personal credit platform formed by the merger of Brazilian fintechs Geru and Rebel earlier this year, with participation from Raiz Investimentos and follow-on from monashees, LTS, Chromo and Sampa. monashees and XP invested USD4m in 2018. Read more
Mountain Nazca Leads USD2.3m Round for Mexican E-Commerce Platform Meru (en español) (Forbes) Mountain Nazca led a USD2.3m pre-seed round for Mexican e-commerce platform Meru, with participation from Ricardo Weder (Jüsto), Roger Laughlin (Kavak) and David Geisen (Mercado Libre). Read more
Astella Investimentos Leads BRL6.5m Round for Food Recipe Discovery Platform DeliRec (em português) (Startupi) Astella Investimentos led a BRL6.5m seed round for DeliRec, a Brazilian social platform for food recipe discovery. Read more
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 Real Assets News
Vinci Partners’ V2I Energia Acquires Eólica Mangue Seco 3 and 4 (em português) (Press Release) Vinci Partners’ V2I Energia has acquired Brazilian wind farms Eólica Mangue Seco 3 and Mangue Seco 4 from Petrobras and Wobben. Read more
CPP Investments to Invest BRL1.178b in Iguá Saneamento (Press Release) Canada Pension Plan Investment Board (CPP Investments) has agreed to invest BRL1.178b for a 45% stake in water and sewage service company Iguá Saneamento, partnering with other investors including IG4 Capital and Alberta Investment Management Corporation (AIMCo). Read more
Vinci Real Estate Acquires 50% Stake in Parque Logístico Pernambuco for BRL66.4m (em português) (SUNO) Vinci Real Estate, via its real estate fund VILG11, has acquired 50% stake in Parque Logístico Pernambuco for BRL66.4m. Read more
Cerberus Acquires 39.2% Stake in Brasil Brokers (em português) (Money Times) Cerberus has acquired 39.2% stake in real estate investment company Brasil Brokers. Financial terms of the transaction were not disclosed. Read more
Vinci Partners Raises BRL256m for New Water and Sewage FIP (Press Release) Vinci Partners has raised BRL256m for VIAS (Vinci Infraestrutura Água e Saneamento Fundo de Participações em Infraestrutura) fund, which will focus on investing private capital into the privatization of state-owned companies that provide water and sewage services for the Brazilian population. Read more
IEnova Closes the Acquisition of Energía Sierra Juarez for USD80m from Actis-backed Saavi Energia (en español) (Press Release) Infraestructura Energética Nova (IEnova) has closed the acquisition of the remaining 50% stake in Energía Sierra Juarez from Actis-backed Saavi Energia for USD80m. Read more
Titan Venture Capital of Piemonte Holding Acquires Oi’s Data Center Unit for BRL325m (S&P Global) Titan Venture Capital of Piemonte Holding has acquired Brazilian operator Oi's data center unit and related entities Telemar Norte Leste and Oi Móvel for BRL325m. Read more
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| LAVCA Members receive a discount on select events. For information, contact Catalina Santos. |
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Investment in Latin America
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