Templeton Strategic Emerging Markets Fund III has acquired a minority stake in Latin America-based parking company Estapar. Terms of the deal were not released. Estapar operates 810 parking lots in Brazil.
Templeton Strategic Emerging Markets Fund III (TSEMF III) has acquired a minority stake in Estapar, Latin America’s largest parking company, in partnership with BTG Pactual Merchant Banking and the Company’s co-founders Helio Cerqueira Junior and Helio Francisco Alves Cerqueira.
TSEMF III, which invests in unlisted as well as listed companies in emerging markets, is the third strategic equity fund managed by Templeton Emerging Markets Group of Templeton Asset Management Limited, an investment management company incorporated in Singapore.
Proceeds from this primary investment will be used to support Estapar’s growth strategy in public and private concessions and investments in real estate assets connected with the parking business, as well as to finance new acquisitions of parking service companies.
Since BTG Pactual’s primary investment in the Company in July 2009, Estapar has expanded its own parking base from 195 serviced lots in 2008, to 525 currently, with corresponding revenue growth from R$141 million in 2008 to R$390 million forecasted for 2011. Including franchisee parking lots, Estapar’s brand is present in 810 parking lots, covering 58 cities and 14 Brazilian states.
“This partnership with Templeton Emerging Markets Group represents another milestone for Estapar, and is consistent with the Company’s vision of innovation, professionalization and improvement of governance standards”, says Helio Francisco Alves Cerqueira, CEO, co-founder with his brother Helio Cerqueira Junior, shareholder, and board member of Estapar. “The Company is well positioned to benefit from Brazilian growth drivers such as credit expansion, increase in wealth, automobile fleet growth, development of the real estate market and significant needs for investment in infrastructure”.
The investment marks the entrance of a leading global asset manager in the Brazilian private equity market. “Although Templeton has been investing in Brazilian equities since the 1980s we now want to expand our activities to private equity opportunities. We identified in Estapar an attractive investment opportunity in the consumer and infrastructure segments, two of our primary investment themes in Brazil,” says Dr. Mark Mobius, executive chairman of Templeton Emerging Markets Group. “The company combines high growth rates with a resilient business and strong cash flows. In addition, our partnership with BTG Pactual’s highly experienced Merchant Banking group adds further strength to our investment orientation in Brazil.
“Templeton’s investment in Estapar validates our investment thesis and strategy implemented since July 2009. The investment consolidates Estapar as the primary strategic platform in a high growth segment”, says Carlos Fonseca partner of BTG Pactual’s Merchant Banking group. “We enjoy having partners in companies in which we invest and believe that Templeton’s global vision and experience in other emerging market investments will add significant value to the Company at the Board level”, complements Marcelo Hallack, also a partner of BTG Pactual’s Merchant Banking Group.
About Estapar Leader in the parking segment in Latin America, Estapar operates 810 parking lots in Brazil, with operations in 58 cities and 14 Brazilian states. This represents 198,8 thousand parking spaces under management and 3,9 million square meters of area, servicing approximately 10 million vehicles, between rotating, regular, and accredited customers. In the street parking segment (“zona azul eletronica”), the company operates concessions in 14 cities, which represents over 18 thousand parking spaces and 1,088 installed electronic parking meters.
The company was founded in 1981 by brothers Helio Cerqueira Junior and Helio Francisco Alves Cerqueira, and is headquartered in Sao Paulo, employing over 5 thousand direct employees. In July 2009, the company received an investment by BTG Pactual’s Merchant Banking group.
About Franklin Templeton and Templeton Strategic Emerging Markets Fund III Templeton Strategic Emerging Markets Fund III (“TSEMF III”), is a Limited Duration Company incorporated in the Cayman Islands and available only to institutions and sophisticated investors makes strategic investments throughout emerging markets. TSEMF III is managed by the Templeton Emerging Markets Group of Templeton Asset Management Ltd (“TAML”), which has 17 offices located throughout emerging markets. TAML’s emerging markets investment team is headed by Dr. Mark Mobius and manages over US$40 billion as of September 30, 2011.
TAML is a subsidiary of Franklin Resources, Inc. BEN -0.02% , a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over US$675 billion in assets under management as of November 30, 2011. For more information, please visit franklintempleton.com.
About BTG Pactual and BTG Pactual Merchant Banking BTG Pactual is Brazil’s leading investment bank, with operations in Investment Banking, Asset Management and Wealth Management. It has a track record of almost three decades and offices in Sao Paulo, Rio de Janeiro, Belo Horizonte, Recife, Porto Alegre, London, New York and Hong Kong. BTG Pactual currently has net equity of R$7.8 billion, with over R$113.2 billion in assets in our Asset Management group and R$38.9 billion in assets in our Wealth Management unit.
BTG Pactual Merchant Banking realizes private investments with proprietary and third party capital in Brazil. The group supports companies’ development using its financial expertise and solid business principles such as meritocracy, alignment of interests between partners, long-term vision and implementation of the highest standards of corporate governance. The Merchant Banking group focuses on private equity, infrastructure, and real estate investments and currently has R$6.8 billion of assets under management.