Buyouts Snapshot: Gávea closes $1.1 bln Brazil fund

Gávea Investimentos closed its latest Brazilian private equity fund on $1.1 billion, adding another vehicle to the already impressive list of Latin America-focused funds to hold closes in 2014.

Limited partners rushed into several Brazil and Latin America-focused private equity funds in 2014. Advent International closed its sixth Latin America fund on $2.1 billion in November and Pátria Investimentos, a Blackstone Group-backed firm, closed on roughly $1.8 billion in July, peHUB reported. The Carlyle Group is currently marketing a $452 million Brazilian fund as well, according to a peHUB report.

Private equity fundraising in Latin America peaked in 2011, with $17.8 billion raised, according to an Ernst & Young report that cites Preqin data. That total fell to $8.1 billion in 2012 and $5.2 billion in 2013.

Gávea was widely reported to have been approaching a final close earlier this year. The firm sought between $1 billion and $1.5 billion for Gávea Investment Fund V, which counts Kentucky Teachers’ Retirement System, The Second Swedish National Pension Fund, AP Fonden 2 and The Endowment Master Fund among its investors, according to an April report from Private Equity International.

Gávea’s previous fund closed on $1.9 billion in 2011. Its 2008 vintage, a $1.2 billion vehicle, netted a 12 percent IRR and 1.59x multiple as of June 30, according to UTIMCO data cited by Bison.

J.P. Morgan Asset Management acquired a majority interest in Gávea in 2010. The firm has roughly $6.5 billion under management with offices in São Paulo and Rio de Janeiro.

Buyouts Snapshot is a brief look at selections of work that appear in our premium publication Buyouts. Buyouts is published by Buyouts Insider. Subscribers can read the full story here. Go here to subscribe to Buyouts.

Photo courtesy of Shutterstock.