Global investors pay more attention to Emerging Markets. What impact on Brazilian Private Equity?

Headlines are showing a massive flight of investments toward EM. Brazil is among the top destinations.  How does that affect Private Equity?

With last week’s capture of $ 3.27 billion, Emerging Markets Equity funds  passed the  $ 10 billion milestone in 2010, increasing the amount of portfolio assets to U.S. $ 569 billion. (Jornal Valor) How does it affect the Private Equity sector in Brazil?

With all the attention coming its way, it is natural that prices go up in Brazil. The Bovespa index proves it by being over 70.000 again.

This bullish cycle in stock markets makes PE  even more attractive in Brazil. Why? In short, because it offers two essential elements for the PE activity: a growing domestic market and  appetite for IPOs. You have product and an exit door for investors.

Advent might agree. They just finished raising a fund of $ 1.65 billion to invest in buying stakes in companies in Latin America. This is the first fund closed by Advent worldwide since the bursting of the financial crisis in October 2008.

According to Jornal Valor, about 50% of that value should go to Brazil. With the new fund, Advent totals $ 5 billion in funds  raised for the region through five funds since 1996.

Published by Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Group. She has a PhD in Economic History and advises companies and investment agencies in international business development.She served as Corporate Relations Director and later, on the board of the Brazilian Investment Analysts Association (APIMEC).

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