Latin American Private Capital Update - January 26, 2021Latin American Private Capital Update January 26, 2021 | | | 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. |
| LAVCA has announced that Nicolás Szekasy, Co-Founder and Managing Partner of KaszeK Ventures, was appointed to the position of Board Chair. In addition, Juan Alberto Leautaud, Managing Director and Head of BlackRock’s Latin America Infrastructure Investment Group, and Dirk Donath, Managing Partner at L Catterton, joined the LAVCA Board.
Prior to founding KaszeK Ventures, one of the largest VCs in Latin America with over US$1b capital raised, Szekasy was CFO at MercadoLibre where he led its US$333 million IPO in 2007. He sits on a number of boards globally, including several of Latin America’s tech unicorns.
Leautaud leads BlackRock’s Latin America Infrastructure Investment Group with approximately US$1b of equity commitments under management. He was former Co-Founder and CEO of infrastructure investment manager I Cuadrada (I2) and previously served as Chief Operating Officer at Mexico Retail Properties.
Donath joins LAVCA’s Board subsequent to L Catterton’s recent exit of Mexico’s Cholula via a US$800m sale to McCormick & Company. Prior to his current role, Donath held positions at Eton Park Capital Management and was a Founding Partner of Pegasus Capital.
Nicolás’ work in VC and tech is an outstanding example of some of the transformational opportunities we are seeing across Latin America. Combined with the additions of Juan Alberto, a leader in real assets investing, and Dirk who brings a deep track record in consumer private equity deals, the LAVCA Board is a true reflection of the evolving landscape for private capital in the region. We are excited to have these impressive investors collaborating to represent our membership and the industry- Ivonne Cuello, CEO, LAVCA.
See the full Board and read the press release here.
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| The COVID-19 pandemic accelerated ongoing demographic trends in the Mexican home gardening sector, as more Mexican households sought sustainable sources of vegetables and fruits and explored new low-contact hobbies during confinement. Growth in the retail seeds sector in the last decade has been driven by demographic changes among buyers. While the traditional target market for home gardening has been elderly women, younger generations are increasingly becoming more interested in urban gardening to improve self-sufficiency, health, and well-being.
In this context, LAVCA member PC Capital identified Rancho Los Molinos as an attractive investment opportunity for the firm’s debut fund. In addition to a growth trajectory driven by an increasing consumer base, the company also aligned with PC Capital’s focus on sustainability and social impact. From an environmental perspective, household gardens contribute to climate change mitigation targets through the reduction of both food losses in the supply chain and greenhouse gas emissions associated with the transportation of fruits and vegetables to end consumers.
READ the latest deal case featuring PC Capital's investment in Mexican agribusiness/retail seeds company Rancho los Molinos.
The case study includes the deal opportunity and execution, community impact, as well as job creations.
Rancho Los Molinos increased its workforce by 38%—from 58 employees in 2017 to 80 in 2020—to support the company’s rapid expansion. The company now sells its products through a network of more than 2,750 points of sale, including the largest specialized gardening stores and retail chains in Mexico, such as Walmart, Home Depot, and Chedraui. Since 2017, the company has sold over eight million seeds packets containing approximately two billion fruit, vegetable, and flower seeds.
DOWNLOAD the full deal case here. | | |
| A recent study conducted by Flourish Ventures, MEI Facil, and 60 Decibels shed light on the current lives of gig workers across Latin America. Finding that seven out of ten microentrepreneurs are currently earning less than US$200/month in Brazil, which is only 4% higher than the minimum wage, and almost 90% of the 1,600 professionals surveyed had a drop in income as a direct result of the C19 pandemic.
The gig economy continues to be under scrutiny while governments and the private sector aim to accommodate the role of these professionals within society.
Heru, a Mexico-based personal finance and fiscal management platform for gig workers, recently raised a US$1.7m round led by Mountain Nazca, with participation from Flourish Ventures, Magma Partners, Y Combinator, and Xtraordinary Venture Partners.
LAVCA interviewed Co-Founders Stiven Rodríguez and Mateo Jaramillo to further understand the current status of the local gig economy and the vision of the company for independent workers.
Most of the gig workers in Latin America live in the outskirts of major cities and commute every day for work. They spend most of their time on the street without access to a place where they can feel safe and are often rejected by the general public...Heru aims to be the one-stop shop for gig workers in Latin America.
READ the full interview including how Heru aims to establish partnerships with key ecosystem players to expand its product suite. | | |
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Private Equity News
Blackstone-Backed Pátria Raises US$588m in US IPO; Blackstone Partially Exits (Reuters) Blackstone-backed Pátria Investimentos has raised US$588m in a US IPO, with Blackstone reducing its stake to 14% for US$262m. Pátria will use the proceeds to launch new funds and expand its business in Brazil and Latin America. Read more
DHS Private Equity Trust Acquires Grupo VITRO for US$1.2b (Press Release) DHS Private Equity Trust has acquired Mexican glass and beverage producer Grupo VITRO for US$1.2b. Read more
Alloy Merchant Finance Completes Undisclosed Debt Investment in Moneta Technologies (Press Release) Alloy Merchant Finance has completed an undisclosed debt investment into payments solutions software specialist Moneta Technologies. Read more
EB Capital Sells its Stake in BR Supply (em português) (Valor Econômico) EB Capital completed the sale of its stake in Brazil-based office supplies company BR Supply to its founder Cesar Folle. The fund invested in BR Supply in November 2017. Read more
Credito Real, Promecap, and Credit Suisse Acquire Loan Portfolio of Famsa (en español) (El Universal) Credito Real, Promecap, and Credit Suisse have acquired the loan portfolio of Mexico-based retail and savings bank chain Famsa. The portfolio is made up of payroll loans, one of the main business lines of the company. Read more
Darby International Capital Launches as Independent Asset Management Company (Press Release) Darby International has launched an independent asset management firm specializing in debt investments in Latin America. Read more
Australis Partners Acquires Majority Stake in Sekura (Press Release) Australis Partners has acquired a majority stake in Mexican multiline insurance company Sekura for an undisclosed amount. As part of the transaction, Arpa Capital and non-executive shareholders exited ownership of Sekura. Read more
IDB Invest Commits US$20m to HMC Andean Private Debt Investment Fund (Press Release) IDB Invest has committed US$20m to HMC Andean Private Debt Investment Fund, administered by HMC, a fund management and distribution firm focused in Latin America. The fund will provide financial solutions to medium-sized companies in Peru, Colombia, and Chile. Read more
Australis Partners Acquires 80% Stake in Galénica (Press Release) Australis Partners has acquired an 80% stake in Chile-based vitro diagnostic company Galénica. Financial terms of the transaction were not disclosed. Read more
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Venture Capital News
SoftBank Latin America Leads Series C Investment in Brazilian Fiscal and Accounting System Contabilizei (LABS News) SoftBank Latin America led an undisclosed Series C in Contabilizei, a Brazilian tax filing and accounting SaaS platform for Brazilian SMEs, with follow-on from KaszeK Ventures, Point72, Quona Capital, and IFC. Read more
IDB Invest Grants US$40m in Debt Financing to Mexican Lending Platform AlphaCredit (IDB Invest) IDB Invest provided US$40m in debt financing to AlphaCredit, a Mexican lending platform for individuals and SMEs in Mexico and Colombia. SoftBank led a US$125m Series B in 2020. Read more
Greenspring Associates Leads US$35m Series B in Colombian Proptech La Haus (Press Release) Greenspring Associates led a US$35m Series B in La Haus, a Colombian residential real estate platform, with follow-on from KaszeK Ventures, Acrew Capital, NFX, IMO Ventures, Hometeam Ventures, and Spencer Rascoff (Zillow). Read more
Brazilian Telehealth Platform ViBe Saúde Raises US$10m from Undisclosed Investors (LABS News) ViBe Saúde, a Brazilian telehealth platform offering virtual consultations led by general practitioners and chronic care management professionals, raised a US$10m Series A from undisclosed Swedish investors. Read more
Elevar Equity and Global Founders Capital Invest R$35m in Peruvian Grocery Platform Favo (em português) (Startupi) Elevar Equity and Global Founders Capital invested R$35m in Favo, a Peruvian grocery fulfillment platform leveraging neighborhood-based deliverers for last-mile distribution. Favo is founded by PE firm Nexus Group co-founder Alejandro Ponce. Read more
Valor Capital Leads US$5m Seed Round in Corporate Benefits Platform XP Health (em português) (Medicinasa) Valor Capital led a US$5m seed round in XP Health, a California-based vision benefits platform for Brazilian corporate employees, with participation from Village Global, Semper Virens, J-Angels, Stanford’s StartX, and Jeff Epstein (Oracle). Read more
Capria Announces US$2m Commitment in Angel Ventures Pacific Alliance Fund II (LatamList) Capria Ventures announced a US$2m commitment in Angel Ventures Pacific Alliance Fund II, which is focused on early stage companies in Mexico, Colombia, Chile, and Peru. Read more
KaszeK Ventures Leads R$20m Series A in Brazilian Customer Service Platform OmniChat (Press Release) KaszeK Ventures led a R$20m Series A in OmniChat, a Brazilian chat-based customer service platform that uses WhatsApp, Facebook Messenger, and SMS, with follow-on from Honey Island Capital, a seed investment firm run by EBANX founders. Read more
Astella Investimentos Leads R$11m Round in Brazilian Corporate Training Platform Skore (em português) (Exame) Astella Investimentos led a R$11m round in Skore, a Brazilian corporate training platform, with participation from Alexia Ventures. Read more
Alphabit, AU21 Capital, Fomocraft Ventures, and Others Invest US$1.45m in Fintech Royale Finance (FINSMES) Crypto fund Alphabit, AU21 Capital, Fomocraft Ventures, Kyros Ventures, and Vendetta Capital invested US$1.45m in Royale Finance, a Belize-based fintech providing decentralized finance infrastructure for online casinos and prediction markets. Read more
BuenTrip Ventures Leads US$1.25m Round in Ecuadorian Cybersecurity Platform Kriptos (en español) (Forbes) BuenTrip Ventures led a US$1.25m in Kriptos, an Ecuadorian cybersecurity platform expanding operations to Mexico, with participation from Techstars, Sixthirty Cyber, Wayra, Compusoluciones Ventures, SVlinks Angels, 0bs.mx, and angels. Read more
Patagonia Capital Partners, Inverlat, and Quadrant Invest in Uruguayan Engagement Platform S1Gateway (Press Release) Buenos Aires- based private investment firm Patagonia Capital Partners, Inverlat, and NY-based Quadrant Management, made an undisclosed investment in S1Gateway, an Uruguayan omnichannel communication and engagement platform for direct to consumer companies. Read more
MAYA Capital Leads R$3.5m Round in Brazilian E-commerce Platform Unbox (em português) (Startupi) MAYA Capital led a R$3.5m round in Unbox, a Brazilian e-commerce platform for SMEs. Read more
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Real Assets News
American Towers to Acquire Telefonica’s KKR-backed Telxius Division for US$9.41b (Reuters) US-based American Towers has agreed to acquire Telefonica’s KKR-backed Telxius division (Europe and Latin America) for US$9.41b. Read more
New Fortress Energy Acquires Stonepeak-backed Hygo and Golar LNG Partners for US$5b (Press Release) New Fortress Energy has acquired Stonepeak-backed Hygo and Golar LNG Partners for US$5b. The investment will add 2700MW of power generation and a robust customer pipeline in Brazil’s natural gas and power markets. Read more
Mubadala Acquires Control of Rota das Bandeiras for R$2b (em português) (Valor Econômico) Mubadala Investment Company has acquired Farallon Capital Management’s interest in Brazil-based highway concession Rota das Bandeiras for R$2b (approximately US$376m), becoming the company’s sole controller. The concession operates nearly 300 kilometers of highways in São Paulo. Read more
Appian Raises US$775m for Appian Natural Resources Fund II (Press Release) Appian Capital has closed its second fund (“Fund II”) for US$775m. The vehicle will focus on investments in metals and mining, targeting assets in jurisdictions with proven geology, supportive governments, and a robust legal framework including Brazil, Australia, Mexico, Peru, Chile, and Canada, where Appian has existing operations. Read more
Rockville Capital Launches US$147m Rockville Solar Energy I and Acquires Catemu SpA Solar Plant (Press Release) Rockville Capital has launched a US$147m Rockville Solar Energy I fund and has acquired Catemu SpA Solar Plant. Read more
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| LAVCA Members receive a discount on select events. For information on member discounts, contact Catalina Santos. |
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Investment in Latin America
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