Latin American Private Capital Update - November 24, 2020Latin American Private Capital Update November 24, 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. |
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READ the latest deal case featuring Aqua Capital's investment in Brazil-based agribusiness/animal feed additives company Yes Synergy.
Antibiotics have been widely used in agriculture to enhance animal productivity since the 1950s, but their excessive use has exacerbated the rise of antibiotic-resistant germs in humans. In turn, the use of antibiotics for non-medical purposes has increasingly come under scrutiny in the last two decades.
Yes produces a low-cost alternative to antibiotics and, as more countries are taking measures to restrict the use of antibiotics in agriculture, Yes is well positioned to continue developing its antibiotic-free additives and expand into new markets.
Aqua Capital invested US$29.4 million for a 73.7% stake in Yes in April 2016 to support research and development as a key driver of growth and innovation, decrease the company’s supplier concentration and mitigate other potential risks along its supply chain, and expand to markets outside of Latin America.
“Since Aqua’s investment, the company shifted from low-cost products with limited differentiation (e.g., mycotoxin binders and yeast derivatives) towards higher value-added products (e.g., immunomodulators and organic minerals). Higher value-added products accounted for 43% of sales in 2020, compared to 36% in 2016. Research and development of new products, protection of intellectual property, and partnerships with recognized Brazilian universities have been key drivers of this growth—the company registered eight new patents and over 300 products in the last four years.”
DOWNLOAD the full deal case here. | | |
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📢 LAVCA continues collaborating with member investors to showcase portfolio company deal cases to our audience of global institutional and fund investors, as well as strategic and long-term investors active or interested in Latin America.
Open exclusively to LAVCA member firms, deal cases submitted by Dec. 31, 2021 will also be considered for the 🏆 Latin American Private Capital Awards.
Participating firms from past deal cases and awards have included: Actis, ACON Investments, Advent International, Altra Investments, Alta Growth Capital, Aqua Capital, Ashmore Colombia, Australis Partners, Axxon Group, Crescera Capital, Capital Group Private Markets, Colony LatAm Partners, Darby Overseas Investments, DGF Investimentos, Ecus Private Equity, Enfoca, Fortaleza GP, IGNIA Partners, Gerbera Capital, Graycliff Partners, Kandeo, L Catterton, Lafise Investment Management, Linzor Capital Partners, LIV Capital, MAS Equity Partners, Macrocapitales, Mater Private Equity, Moringa Partners, Nexxus Capital, Peninsula Investments Group, PC Capital, Riverwood Capital, Sembrador Capital, Sigma Asset Management, Southern Cross Group, Teka Capital, The Carlyle Group, Victoria Capital Partners, Vinci Partners, and more.
NEW: LAVCA is looking in 2020 to highlight how firms are supporting portfolio companies and surrounding communities during the global pandemic as a way to showcase the importance of the private sector for a long-term recovery.
Complete the online submission form. A PDF submission form can be sent to fund managers upon request.
LPs and service providers can also nominate deals using this SHORT FORM.
THE DEADLINE TO SUBMIT A DEAL IS DECEMBER 31, 2020.
ACCESS past case studies here. Questions can be directed to Catalina Santos. | | |
| Viking Global Investors led a US$150m round in Conductor, a Brazil-based payments processor and card issuance provider for fintechs, with participation from Advent affiliate Sunley House Capital, and follow-on from Riverwood Capital and Visa.
An earlier round in Conductor represented Visa Ventures’ first investment in Brazil, when they committed an undisclosed amount in 2018.
LAVCA recently interviewed Chief Strategy Officer Marcelo Jacques to learn more about the company’s current standing amid the C19 crisis and its roadmap towards becoming a publicly traded company.
READ the full interview. | | |
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Private Equity News
L Catterton Exits Cholula via US$800m Sale to McCormick (Press Release) L Catterton exited Cholula, a Mexico-based hot sauce producer and distributor, through a US$800m sale to McCormick & Company. The transaction is subject to approval. L Catterton acquired the company in 2019. Read more
Advent International to Acquire Sophos Solutions from Grupo bvc for US$35.6m (Press Release) Advent International has agreed to acquire technology consulting services company Sophos Solutions from The Colombia Securities Exchange Group (bvc Group) for COP$129.6b (US$35.6m). Read more
DEG Commits up to US$11.8m to Vinci Impact and Return Fund IV (Press Release) DEG has agreed to commit up to US$11.8m to Vinci Impact and Return Fund IV, a fund managed by Vinci Partners. The vehicle will invest in SMEs across the education, healthcare, IT, and environmentally friendly consumer goods sectors in Brazil. Read more
Aqua Capital Acquires Brazilian Agribusiness Verde Agrícola (em português) (Investimentos e Notícias) Aqua Capital has agreed to acquire Verde Agrícola, a Brazil-based reseller of spare parts for agricultural machinery, for an undisclosed amount. Read more
Continental Grain Company Invests in Peru-based Multifoods (Press Release) Global investor Continental Grain Company (CGC) has closed an investment in Multifoods, a Peru-based contract-manufacturing firm supplier of shelf-stable food and beverage products, serving grocery retailers and CPG companies. Read more
Aqua Capital’s AgroGalaxy Acquires Boa Vista (Valor Econômico) Aqua Capital’s Brazil-based AgroGalaxy has acquired Boa Vista for an undisclosed amount. Aqua integrated its farm supply businesses portfolio in AgroGalaxy in October 2020. Read more
Bela Vista Investimentos Invests in Wessel’s Meta Foods (em português) (Valor Econômico) Bela Vista Investimentos, a former HSBC fund, invested an undisclosed amount in Meta Foods, a company founded by the Wessel brand that develops vegetable products without artificial ingredients. Read more
EB Capital Acquires 55% Stake in Brazilian Ecommerce Platform Loja do Mecânico for R$550m (Global Legal Chronicle) EB Capital has acquired a 55% stake in Brazil-based ecommerce platform for tools and machines Loja do Mecânico for R$550m. The transaction reportedly brings the company’s valuation to R$1b. Read more
GIC Invests R$425m in Brazilian Management Systems Company Sankhya (em português) (Baguete) GIC has invested R$425m in Sankhya, a Brazil-based supplier of business management systems, for a significant minority stake. Read more
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 Venture Capital News
SoftBank Leads US$58m Series D in Brazilian Ecommerce Olist (Press Release) SoftBank Latin America Fund led a R$310m (~US$58m) Series D in Olist, a Brazilian ecommerce platform, with follow-on from Valor Capital, Peninsula, VELT Partners, FJ Labs, and angel investor Kevin Efrusy. Read more
Confrapar and Crescera Investimentos Exit Billing Platform Vindi Via R$180m Sale to Locaweb (em português) (Brazil Journal) Confrapar and Crescera Investimentos exited Vindi, a Brazilian billing automation platform, through a R$180m sale to Locaweb, a Brazilian web services hosting platform. Read more
Index Ventures Leads US$19m Series A in Mexican Digital Health Insurer Sofía (TechCrunch) San Francisco-based VC Index Ventures led a US$19m Series A in Sofía, a Mexican digital health insurer and telemedicine platform, with participation from KaszeK Ventures and Ribbit Capital. Read more
Tribe Capital Leads US$13.5m Series A in Mexican Identity Verification Provider Mati (Press Release) Tribe Capital led a US$13.5m Series A in Mati, a Mexico-based identity verification technology provider, with follow-on from Spero Ventures, Amaranthine, Operator Partners, Aglae Ventures, and Comma VC. Read more
monashees, ONEVC, and Y Combinator Lead US$5m Seed Round in Brazilian Fintech Facio (Crunchbase) monashees, ONEVC, and Y Combinator led a US$5m seed round in Facio, a Brazilian financial education and payroll advances platform, with participation from angels Igor Marchesini (SumUp), Gabriel Braga (QuintoAndar), and Michael Seibel (Y Combinator). Read more
monashees and Qualcomm Ventures Lead Undisclosed Series A in Edge Computing Azion (em português) (Fusões & Aquisições) monashees and Qualcomm Ventures led an undisclosed Series A in Azion, a Brazilian developer of edge computing software applications. Read more
Memory Merges with Accel-KKR-Backed Siigo (en español) (Press Release) Uruguay-based software company Memory has announced a merger with Colombia-based Accel-KKR-backed Siigo. Read more
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 Real Assets News
Actis Exits Mexican Renewable Energy Company Zuma Energía to China’s SPIC (Bloomberg Green) China’s State Power Investment Corp., through its Hong Kong-based unit China Power International Holding Limited, has acquired Mexico-based renewable energy company Zuma Energía from Actis for an undisclosed amount. Read more
Pátria Investimentos will Invest R$3b in Telecom Winity (em português) (Baguete) Pátria Investimentos has launched wireless infrastructure company Winity with plans to invest up to R$3b via Pátria Infraestrutura IV Fund. Read more
The Carlyle Group to Acquire Occidental’s Onshore Assets in Colombia for US$825m (Press Release) The Carlyle Group has agreed to acquire Occidental’s onshore assets in Colombia for US$825m. The transaction is expected to close in Q4 2020. 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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