Thomson Reuters: Domestic Consumption Helps Drive Record Year for Venture Equity in Latin America

WorldTrade Executive (WTE), part of the Tax & Accounting business of information-provider Thomson Reuters, has released its “Venture Equity Latin America 2011 Year-end Report” with detailed analyses for readers to track regional trends with year-to-year comparison data.

“Private equity and venture capital investing in Latin America showcased an ambivalent turnout in 2011, as investment levels waned but fundraising and exits remained stronger than ever,” said Gary Brown, senior director of WTE, Thomson Reuters. Private equity and venture capital investments declined 68 percent or by $11.7 billion in 2011. The report also documents 84 deals of over $5.5 billion.

The twice-monthly publication delivers comprehensive information on venture capital and private equity deal flow, new fundraising endeavors, exit activity, restructuring and bankruptcy proceedings impacting existing investments, and regulatory developments.

“A testament to Latin America’s promise was seen in the turnout of fundraising and exit activity, both of which reached unprecedented heights,” said Brown. Fundraising came to $13 billion, illustrating a 67 percent growth increase over the prior year.

Exit disbursements totaled $8.3 billion, showing a 5 percent growth increase year-over-year.

Some of Latin America’s private equity and venture capital trends from 2010 persisted into 2011:
• Increased domestic consumption and purchasing power of the middle class were significant drivers of private equity and venture capital investment in Latin America in 2011.

• Brazil remained the most attractive location for private equity and venture capital investment. Deals activity came to nearly $4 billion and fundraising reached over $9 billion.

• Exits channels improved in the region, as IPO activity rose substantially.

• Regional deals and fundraising grew in popularity as more companies became cloud-based businesses. Regional funds reached $2.6 billion at year-end 2011.

WTE also publishes Latin American Law and Business Report and Practical Latin American Tax Strategies, as well as other periodicals and reports covering international transactions.

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