Private equity and venture capital investment in Latin America reached USD1.79bn in the first half of 2012, down 60 per cent from the same period in 2011, according to the latest issue of Venture Equity Latin America from Thomson Reuters.
The report is published by WTE, part of the tax and accounting business of Thomson Reuters.
Private equity activity in the region has been a roller coaster ride in recent years. It climbed from USD1bn in 2005 to USD7.5bn in 2007, then dipped to about USD3bn in 2008 and 2009. It spiked the following year to USD17.2bn before declining to USD5.5bn in 2011.
Results for the first half of 2012 shows that investor activity slowed even further, although according to Gary Brown, publisher of Venture Equity Latin America, there are some positive signs.
“Several factors in Latin America shine through the overall dimming investment climate in regions across the globe,” says Brown. “Among these trends was the boom in the e-commerce industry, fuelled by a growing middle class across Latin America, as well increased investment in the Internet and IT sectors.”
In addition, the volume of total committed investments — deals announced but not completed — in the first half of 2012 suggest a recovery is possible. Total committed investments reached about USD5.5bn through the end of June; many of these deals are expected to close by year’s end.
“The trend of recurring large investors in the region such as Atomico and Intel Capital — which each announced three deals in Brazil so far — echoes the assurance that investors are having in the region,” editor Linda Zhang wrote in the report.
The report covers fundraising and exit trends, PE activity by sub-region and country, and detailed transaction information.
