Business

Advent International raises $2 billion for seventh private equity fund dedicated to Latin America

The new fund brings Advent’s total capital raised for Latin America since 1996 to approximately $8 billion

Advent's office in Sao Paulo. Photo: Screenshot/Google Maps
  • The new fund solidifies Advent’s position as the longest-established private equity investor in the region;
  • Advent’s recent investments in Latin America include Nubank, CI&T and Prisma Medios de Pago.

Advent International, one of the largest and most experienced global private equity investors, today announced that it has completed fundraising for Advent Latin American Private Equity Fund VII (“LAPEF VII” or the “Fund”). LAPEF VII received $2 billion in commitments from institutional investors worldwide.

The new fund brings Advent’s total capital raised for Latin America since 1996 to approximately $8 billion—the most of any private equity firm operating in the region, according to the Association for Private Capital Investment in Latin America (LAVCA). Including its Global Private Equity IX and Advent Tech funds closed last year, Advent has raised $22 billion in private equity capital in the last 16 months.

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Patrice Etlin, a Managing Partner at Advent in São Paulo and member of the firm’s global Executive Committee said that “LAPEF VII is a testament to our strong track record in Latin America, established over six generations of funds and several economic and private equity cycles.”

“We continue to see compelling investment opportunities in the region, driven by attractive valuations and positive, long-term market dynamics. We look forward to partnering with mid-sized to large companies and helping them grow by applying our deep sector expertise, global platform and world-class operational resources.”

Patrice Etlin, a Managing Partner at Advent in São Paulo and member of the firm’s global Executive Committee

Continuing the same pan-regional, sector-focused strategy as its predecessors, LAPEF VII will invest primarily in Brazil, Colombia, Mexico and Peru, and may also invest opportunistically in nearby countries including Argentina and Chile. It will focus on five sectors: (1) business and financial services; (2) healthcare; (3) industrial; (4) retail, consumer and leisure; and (5) technology. The Fund will have the flexibility to deploy capital across various deal types—including buyouts, corporate carve-outs and growth equity transactions—and sizes, with equity investments ranging from $50 million to $300 million or more.

“Latin America is a large market with a rapidly growing middle class, fueling strong demand for value-added products and services,” said Juan Pablo Zucchini, a Managing Partner at Advent, also based in São Paulo. “Additionally, many Latin American sectors remain highly fragmented, and a large percentage of mid-sized businesses are family-owned. This presents opportunities to create value by consolidating industries, professionalizing businesses and accelerating growth.”

A broad base of institutional investors participated in LAPEF VII, including public and corporate pension funds, endowments and foundations, funds of funds, sovereign wealth funds, family offices and other financial institutions. The majority of the capital came from limited partners in LAPEF VI, with Advent admitting a select number of new strategic investors into the Fund as well.

“LAPEF VII reinforces Advent’s leadership position in Latin America and underscores our continued commitment to the region,” said David Mussafer, a Managing Partner at Advent in Boston and Co-Chair of the firm’s Executive Committee.

One of the longest-established private equity investors in LatAm

Over the past 24 years, the firm has invested or committed $6.8 billion in 64 businesses across the region and fully exited its positions in 43 companies, including nine IPOs. Today, its current Latin American portfolio companies employ more than 80,000 people. The firm has established the largest dedicated private equity team in the region, comprising nearly 40 investment and portfolio support professionals working out of offices in Bogotá, Lima, Mexico City and São Paulo.

To help drive initiatives in Latin America, Advent has established a large network of resources in the region. This includes 39 investment and portfolio support professionals and 30 external operating partners and operations advisors—senior executives with deep sector and functional expertise.

Since 2006, companies that Advent has owned for at least a year have increased revenue and EBITDA on average by 14% and 13% annually during its investment. The combined enterprise value of the firm’s Latin American portfolio has doubled to $41 billion under its ownership.

Advent’s recent investments in Latin America include Nubank, the world’s largest independent digital bank; CI&T, a global provider of digital transformation services; Prisma Medios de Pago, Argentina’s leading payments company; Grupo BIG (formerly Walmart Brazil), the third-largest food retailer in Brazil; Enjoy, a hotel and casino operator in Chile, Uruguay and Argentina; Grupo Farmacéutico Somar, a leading generic drug manufacturer in Mexico; YDUQS, the second-largest post-secondary education company in Brazil; and Canvia, a leading IT services provider in Peru.

READ ALSO: Nubank acquires Easynvest brokerage firm and enters the investment market

Recent exits in Latin America include Easynvest, the largest digital investment platform in Brazil; Lojas Quero-Quero, the largest construction materials retailer in Brazil by number of stores; Ocensa, Colombia’s largest crude oil pipeline; Grupo Biotoscana (GBT), a leading biopharmaceutical company in Latin America; International Meal Company (IMC), one of the region’s largest operators of airport, road-side and casual dining restaurants; Alianza Fiduciaria and Alianza Valores, the leading independent trust and asset management company in Colombia; Faculdade da Serra Gaucha (FSG), a private education company in southern Brazil; Terminal de Contêineres de Paranaguá (TCP), the second-largest container terminal in Brazil; and Grupo Fleury, Brazil’s largest provider of premium medical diagnostic services.

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