| SAO PAULO, Sept 4
SAO PAULO, Sept 4 Private equity and venture
capital firms in Latin America could raise $8 billion from
investors this year, the most since 2011, a regional industry
group said on Thursday, which may propel fresh buyouts in
infrastructure, logistics and other sectors.
The estimate from the Latin American Private Equity and
Venture Capital Association come after 23 buyout firms obtained
fresh capital across the region in the first half. Fundraising
totaled $3.5 billion in the period, said the group, known as
Lavca, without detailing year-on-year or sequential comparisons.
Last year, the private equity and venture capital industry
raised $5.5 billion for their Latin American investments.
Getting new money from investors could turbocharge the
buyout industry's ability to step up acquisitions.
Private-equity buyouts neared $6.1 billion in Brazil alone
last year. Carlyle Group LP, Advent International LP and
Brazil's Patria Investimentos Ltda and Gávea Investimentos Ltda
were among firms that tapped investors this year for new money.
Fundraising among private-equity firms has slipped every
year since 2011, when a record $10.3 billion was raised,
allowing many buyout firms to refocus on investing.
A recovery in fundraising this year indicates that
risk-taking is on the rise again and that buyout activity in the
region, especially in Brazil, is maturing.
"This is a dynamic period for private equity fundraising,"
said Cate Ambrose, Lavca's president, in a statement.
In line with that trend, investments - or purchases of
stakes using client and proprietary money - in the first half of
this year totaled $2.57 billion through 93 transactions, 10
percent fewer than a year earlier, Lavca said. Investments hit
the highest in six years in 2013.
According to Lavca, transactions in the first half reflected
a trend of larger buyouts in the region, with deal sizes of over
$100 million increasing by 27 percent from a year earlier.
Proceeds from exits grew 7 percent year-on-year in the first
half, with 12 divestments valued at $1.6 billion. Brazil
received more than half of those proceeds, or over $1 billion
through eight transactions, up 9 percent from a year earlier.
(Editing by Bernadette Baum)