Private equity firm Advent International has held the final close of its Latin American Private Equity Fund V at USD1.65bn.
The fund, which was oversubscribed, is the largest private equity fund ever raised for Latin America.
It is more than 25 per cent larger than Advent’s previous fund dedicated to the region.
The fund will focus on control buyouts and expansion financings of companies across the region, investing mainly in Brazil, Mexico and Argentina.
It will target high-growth sectors in which Advent has expertise, including financial services, airport services, business services, retail/consumer and education.
The typical equity investment will be USD50m to USD200m in companies with enterprise values between USD50m and USD750m.
"We are very pleased with the strong support we received from both existing and new investors, particularly given the challenging fundraising environment," says Advent managing partner and co-head of Latin America Ernest Bachrach. "We believe the high level of demand reflects our clear leadership position in Latin America, with our large, experienced team, successful track record established over 14 years and differentiated strategy for building value in companies."
A total of 51 investors participated in the fund, including public pension funds, endowments and foundations, funds of funds, sovereign wealth funds, other financial institutions, corporate pension funds and family offices.
The majority of the capital came from limited partners in LAPEF IV, with Advent admitting a number of new investors into the fund as well. Geographically, 56 per cent of the capital was raised from North American investors, 25 per cent from European investors and 19 per cent from institutions in the Middle East, Asia, Latin America and Africa.
