Advent International has begin marketing its fifth fund to invest in Latin American companies. The effort, called Advent Latin America Private Equity Fund V (LAPEF V), has closed on $70 million to date, according to a regulatory filing. No target capitalization was disclosed.
Advent International’s prior Latin America fund closed on $1.3 billion in commitments in 2007, topping its target by 30 percent. It also was the largest private equity fund ever raised for investment in Latin America, the company said at the time.
The fundraising process may take a bit more elbow grease this time around. On top of the already-difficult fundraising environment, a first half report for 2009 show M&A in Latin America has taken a hit comparable to the developed markets. Deal volume was down by 36% compared with the first half of last year with a 45% drop in value, according to news service mergermarket. However, the report shows a glimpse of recovery for M&A in Latin America: second quarter numbers saw an 82% jump in deal value from the first quarter, while volume remained steady.
Prior to Advent International’s successful fourth fundraise, the firm gathered $375 million in 2005 and $265 million in 2002 for LAPEF III and LAPEF II, respectively.
Advent International has been hard at work investing that fourth fund in Mexican, Brazilian, and Argentinean companies, signing at least eight deals since closing the fund in July 2007. As recent as May of this year, the fund acquired a 30% stake in CETIP S.A., a depository for fixed-income securities and over the counter derivatives. In September of last year the fund announced a trio of deals: Frango Assago, a highway restaurant chain in Brazil, Quero Quero, a Brazilian home improvement retail chain, and Aerodom, an airport operator based in Dominican Republic. The firm did not respond to a request for comment.
See the rest of the mergermarket report on Latin American M&A for the first half of the year below: