AIG Capital Partners, a private equity firm and member company of AIG Investments, has held the final close of AIG Brazil Special Situations Fund II with capital commitments of USD691.9m,
AIG Capital Partners, a private equity firm and member company of AIG Investments, has held the final close of AIG Brazil Special Situations Fund II with capital commitments of USD691.9m, exceeding the fund’s initial targeted close.
BSSF II is a second-generation private equity fund focused primarily on investment opportunities in Brazil as well as opportunistic investments in Mexico, Colombia and other Central and South American countries.
The fund targets companies and sectors that are well positioned to capitalise on the region’s competitive advantages, growing domestic consumption and increasing consolidation opportunities in sectors such as agriculture, natural resources, consumer products and services, retail, financial services and manufacturing.
‘Brazil, Mexico, and Colombia have seen tremendous growth over the past several years driven by rising consumer purchasing power, increasing global trade, and economic stability,’ says Ana Vigon, managing director and head of Latin America private equity at AIG Capital Partners. ‘These strong fundamentals create attractive opportunities across the region, particularly for private equity investing, where the market is relatively underserved.’
The fund’s core investment team, led by Vigon, has worked together since 2000. It adopts an active investment approach and seeks to add long-term value to portfolio companies through operational improvement, corporate governance and strategic development. The same team worked on the predecessor AIG Brazil Special Situations Fund, which attracted USD215m in capital commitments.
‘AIG Investments applies a private equity model that leverages the firm’s broad global platform and deep local presence,’ says Robert Thompson, senior managing director and head of alternative investments at AIG Investments.
‘Our investment team has extensive experience investing in the region, and takes a hands-on approach to creating value for our portfolio companies. The strong reputation of our local team enables the team to create proprietary deal sourcing and long-term relationships with local business leaders and entrepreneurs.’
AIG Capital Partners currently has a team of 15 investment professionals dedicated to Latin America, with offices in São Paulo and Mexico City and another planned for Bogotá. To date the fund has made three investment commitments totalling USD112.5m. Its portfolio already includes Providência, a Brazilian manufacturer of non-woven fabrics, and Falcon Farms, a grower and distributor of fresh cut flowers with production in Colombia, Ecuador, and Mexico, and the fund has agreed to invest in Calyx Agro, a venture to exploit farmland trading and management opportunities in Latin America.
AIG Investments, the asset management arm of American International Group, has capabilities in equity, fixed income, hedge fund, private equity and real estate investments through member companies that managed more than USD750bn in assets and employed more than 2,000 professionals in 45 offices worldwide at the end of last year. AIG Capital Partners is a private equity investor in emerging markets, with 100 investment professionals in 19 offices worldwide.
