PE, VC activity hits record in Latin America in 2017

Private equity and venture capital activity in Latin America hit a record in 2017 driven by an upsurge in VC and mid-market deal making, according to the Latin American Private Equity and Venture Capital Association.

During the year, 424 transactions took place, a 20 percent increase. Deal value reached $8.4 billion, the second highest amount in LAVCA records.

Exit activity, in contrast, was largely flat, with 58 deals generating $3.8 billion in value, compared with 49 transactions valued at $4 billion in 2016, the LAVCA said.

Information technology was the dominant sector in 2017, followed by telecommunications.

Of the annual total, $4.1 billion of transactions, or 49 percent, took place in Brazil by way of 170 deals. Mexico was the second with $1.7 billion in investments and 111 transactions, similar to 2016.

PE firms are expect to be more cautious in 2018 with the lead up to presidential elections in Colombia, Mexico and Brazil.

Fundraising in the region added up to $4.3 billion with 58 partial or final closings. Mexico was the largest fundraising market for the first time.