EMPEA Insight: Brazil

Brazil is leading the resurgence of renewed investor interest in private equity in Latin America, drawing nearly 60% of the private equity capital raised for Latin America PE funds in 2007.

Investment volumes are reaching unprecedented heights—at US$4.7 billion, 2007 volumes were roughly 10 times that of 2005, and double the peak of the 1990s boom years. Brazilian GPs are also building a solid record of exits, contributing to the explosion in IPO activity in 2006 and 2007. Brazil’s 2007 aggregate exit values surpassed dollar volumes across the entire region from 2003 to 2005.

With one-third of the region’s population, and roughly half of its land mass, Brazil’s prominence in the region’s private equity renaissance is not only a function of the market’s size, but also a strong record of sustained growth and improved economic stability.

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