As the attention to emerging markets and the need for geographic diversification increases, moves like the one noted below by AIG, and several other new funds being established by General Atlantic, Advent and others, Latin America looks increasingly important for PE funds and investors.
The GDP per capita is increasing in many of these countries and people and passing the economic threshold, after which they start buying and consuming products in general, and leading companies are trying to take advantage of this phenomenon.
AIG Raises $691.9M Latin America Private Equity Fund
April 23, 2008AIG Capital Partners, a member company of AIG Investments, has raised almost $700 million for a new Latin America private equity fund.
The fund has already committed 16% of its $691.9 million and is closed to new investors, AIG Investments said yesterday. The firm boasts 15 employees dedicated to private equity in Latin America with offices in Sao Paolo, Brazil, and Mexico City.
“Brazil, Mexico and Colombia have seen tremendous growth over the past several years driven by rising consumer purchasing power, increasing global trade and economic stability,” Ana Vigon, head of Latin America p.e. at AIG Capital Partners, said.