PE Activity Reported Brisk

LatAm private equity activity was robust in the first half of 2007, according to Venture Equity Latin America (VELA). PE investment is seen on pace to exceed the 2006 near record level, with roughly $2.3bn in the first half of 2007. “Brazil and Mexico dominate the activity, but as certain sectors in these countries are becoming inundated with private equity funds both locally and from abroad, lower valuations make the rest of Latin America a more attractive option,” says VELA. The Andean region has taken $376m in investment so far this year, and not all of it was Chile, says VELA. Fund raising is also on its way to a record year. In the first half of 2007, 20 fund closings amounted to a total of roughly $1.5bn, while two billion-dollar fund closings took place in July, bringing the total close to the $3.66bn raised in 1998. VELA adds that 2007 fundraising data shows over 80% raised in the first half of the year will be dedicated to Brazil. Meanwhile, overall exits in the first half of the year totaled almost $1.6bn, on track to match exit disbursements in 2006, says VELA.