Latin American Private Capital Update - March 31, 2020Latin American Private Capital Update March 31, 2020 |  | | 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. |
| Earlier this month, LAVCA published the 6th edition Deal Book and ESG Cases, an initiative to highlight examples of outstanding private equity investment in Latin America.
It details 12 PE investments across stages, countries, and sectors, including: Actis (Zuma Energía); Advent International (YDUQS); Alta Growth Capital (Fruehauf de México); AshmoreAVENIDA (72 HUB); Australis Partners (The Reve Group); Axxon (BR Marinas); Colony LatAm Partners (Selina); Kandeo Asset Management (Conix); L Catterton (Espaçolaser); MAS Equity Partners (Promota Medica Las Américas); Nexxus Capital (Grupo Turistore); Vinci Partners (Mundo do Cabeleireiro).
Over 70 deal cases have been published by LAVCA since 2014.
CALL FOR SUBMISSION Open exclusively to LAVCA Members, GPs can now submit a deal case for consideration in the next edition of the publication and award.
If you have any question, please contact Catalina Santos. | | |
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Congratulations to the winners of the 2020 Latin American Private Equity Awards who were honored during a special Latin American presentation at the PEI/PRI Responsible Investment Forum in New York earlier this month.
🏆 A panel of institutional investors selected Alta Growth Capital for the 2020 Private Equity Deal for their investment in Mexican semi-trailer manufacturer Fruehauf de México. Alta Growth Capital exited the investment with the sale of Fruehauf to Mexican conglomerate Fultra in March 2019 after only four years, doubling both the company’s sales and EBITDA and successfully reentering the US market following a 20-year absence.
🏆 Lafise Investment Management received the 2020 Social Responsibility in a Private Equity Deal award for their investment in Paradise Ingredients, a Costa Rican banana puree processing company with an occupational health and safety management system, including free medical services to women at the company’s clinic and provision of school supplies to single mothers. The company also offers 24-hour medical services and physical therapy, and employees receive food subsidies and transportation services.
🏆 Actis received the 2020 Environmental Responsibility in a Private Equity Deal award for their investment in Mexican renewable energy firm Zuma Energía. The company provides low-cost, clean power to communities in Mexico through its windfarms and solar plant projects, which contribute to the reduction of 1.35 million tons of CO2 emissions on a yearly basis. Zuma also implemented wild flora and fauna rescue and relocation programs, and achieved one of the lowest collision rates for wildlife at their windfarms compared to North American standards.
🏆 LAVCA awarded Axxon Group a 2020 Environmental Responsibility Private Equity Deal Honorable Mention for their investment in Brazil’s BR Marinas, the largest marina operator in South America. The company implemented a series of programs to reduce plastic consumption and to educate communities about the environment.
Read the press release. | | |
| VC investors and tech stakeholders across Latin America have united with a common message to raise awareness about the spread of COVID-19:
"Each of us has a big responsibility, and together we can make a big difference to minimize the impact of the COVID-19 pandemic for our families, communities, and societies." #LatAmJuntos #LatAmTech
Recommendations from the World Health Organization include: Wash your hands frequently; Maintain social distancing; Avoid touching eyes, nose and mouth; Practice respiratory hygiene; If you have fever, cough and difficulty breathing, seek medical care early; and Stay informed and follow advice given by your healthcare provider.
Access WHO advice for the public with protective measures against COVID-19 here.
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| industry update: IPEV valuation guidelines on covid-19 | | |
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The International Private Equity & Venture Capital Valuation Guidelines Board (“the IPEV Board”) recently announced special guidance with respect to applying the IPEV Valuation Guidelines when estimating fair value at 31 March 2020.
"As a board, our concern is first and foremost for those individuals impacted by the global COVID-19 pandemic, physically, emotionally and economically.
The alternative asset industry is strong and robust. Yet this crisis is different from crises in 2001/2 and 2008/9. The current crisis has impacted more people, more businesses, more rapidly than any crisis in recent history. During this unique and critical time, alternative asset managers are focused on three primary areas of concern:
1. The wellbeing of their employees and the employees of their investee portfolio companies.
2. Helping their investee companies weather the economic storm being faced globally.
3. Providing their investors with timely, useful information as to the performance and financial condition of underlying investments."
Read more information here.
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Private Equity News
IG4 Capital Closes Private Equity Fund II (Press Release) Brazil-focused special situations fund manager IG4 Capital Partners reached a USD231.5m final close for its Private Equity Fund II. IG4 has also raised additional co-investment commitments for the recently created IG4 Capital Infrastructure Investments platform that will target infrastructure and logistics assets in the Andean Region.The total accumulated in assets under management between PE Fund I and II is US$500m. Read more
XP Investimentos Lists PE FIP (em português) (Valor Econômico) XP Investimentos listed its first private equity FIP, fund raising BR$1.264b from more than 5,000 investors from Brazil each investing a minimum of BR$150k. Read more
Warburg Pincus Invests US$63.5m in Superlógica (em português) (Startupi) US private equity firm Warburg Pincus invests US$63.5m in Grupo Superlógica, a Brazil-based IT company with a focus on real estate and financial services. Read more
Vinci Partners Buys Minority Stake in AFC Soluções Ambientais (em português) (Valor Econômico) Private-equity firm Vinci Partners bought a minority stake in Pernambuco’s AFC Soluções Ambientais, an industrial and commercial waste management company. Read more
Nexxus Capital Exits El Farolito via Sale to Grupo Gigante (en español) (El Financiero) Nexxus Capital exited El Farolito, a restaurant franchise in Mexico, via a strategic sale to Grupo Gigante. The details of the transaction are undisclosed. Read more
Michelin Acquires Teak Capital-Backed ConVeyBelts (em português) (Fusões & Aquisições) French multinational Michelin acquired Teak Capital-backed ConVeyBelts, a manufacturer of conveyor belts used in the mining, steel, and transportation sectors. Read more
FKS Group Acquires Stake in Tietê Agroindustrial from Proterra (em português) (Fusões & Aquisições) FKS Group, a multinational agribusiness based in Singapore, acquired 51% stake in Tietê Agroindustrial from Proterra Investment Partners. Read more
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 Venture Capital News
Credijusto Raises US$100m from Credit Suisse (Contxto) Credijusto raised US$100m in debt from Credit Suisse Group. Credijusto previously raised a US$100m debt round from Goldman Sachs in 2019. Read more
Global Founders Capital, KaszeK Ventures, and Canary Invest US$10m Series A in SouSmile (TechCrunch) Brazilian consumer orthodontics startup SouSmile raised a US$10m Series A from Global Founders Capital, KaszeK Ventures, and Canary. Read more
DILA Capital and Others Lead Undisclosed Series A in Ecuadorian/Colombian Startup, Kushki (Contxto) DILA Capital led an undisclosed Series A in payments platform Kushki, with participation from KaszeK Ventures, Magma Partners, Clocktower Ventures, and Conexo. Read more
Pelham Capital and Others Invest US$3m in Karvi (Contxto) Argentine car marketplace Karvi raised US$3m from Pelham Capital and other investors. Read more
Webrock Ventures and Doktor.se Invest US$2.5m in VivaBem (Press Release) Brazilian healthtech VivaBem raised US$2.5m from Webrock Ventures and Doktor.se, Swedish telemedicine provider, to expand digital primary care services in Brazil. Read more
Invent Capital Leads US$1.4m Pre Series-A Round in Dev.f (Press Release) Capital Invent led a MX$27.6m round in Dev.f, a Mexican edtech for programmers. Read more
monashees, Class5 Global, and Others Invest US$8.8m in TrueHome (Crunchbase) monashees and Class5 Global led a US$8.8m investment in TrueHome, a Mexican real estate platform, with participation from FJ Labs and follow-on from Mountain Nazca. Read more
Aurus and ChileGlobal Ventures Makes Undisclosed Investment in TIMining (Contxto) Aurus and ChileGlobal Ventures (through its CLIN fund) made an undisclosed investment in TIMining, a Chilean intelligent mining platform. Read more
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 Real Asset News
CPPIB and Votorantim Energia to Acquire 14 Wind Projects (em português) (Reuters) VTRM Energia, a joint venture between The Canada Pension Plan Investment Board (CPPIB) and Votorantim Energia, has received authorization from CADE to acquire 14 wind projects in northeastern Brazil. Read more
ICM Asset Management Invests in Kampus Santa Rosa Industrial (Press Release) Canadian Asset Manager ICM and Mexican developer of industrial spaces Alveo Kapital, formed a joint venture to build Kampus Industrial Santa Rosa, in Guadalajara, Mexico. Read more
Vinci Partners, RBR Asset Management, and BRL Trust Distribuidora de Valores Acquire GLP for R$590m (em português) (Valor Econômico) Vinci Partners, RBR Asset Management, and BRL Trust Distribuidora de Valores acquire real estate assets from PE-backed Global Logistic Properties (GLP) for R$590m (US$128m). Read more
Colony Capital-Backed Selina to Invest in Mexican Hotels (Institutional Real Estate, Inc.) Global investment firm Colony Capital-backed Selina, a community-focused lifestyle group, will invest US$150m into a Mexico hotel pipeline. The cities in Mexico include San Miguel de Allende, Sayulita, San Cristóbal de las Casas, and Mérida. Read more
FCC and IFM Investors Subsidiary Aqualia Acquire 13 Water Concessions in Colombia (en español) (La Republica) Aqualia, water subsidiary of citizen service group FCC and Australian investment fund IMF, acquires 13 water concessions in Colombia, the third largest market for the group after Spain and the Czech Republic. Read more
ARC Partners and Ithaca Capital Acquire W Hotel Bogotá for US$40m (Press Release) ARC Partners and Ithaca Capital have jointly acquired the W Hotel Bogotá for US$40m. This is the second joint venture for the two firms, who previously acquired the JW Marriot in Panama. 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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