PE Fundraising to Level Off

LatAm PE investors don’t expect fundraising to exceed 2007 levels. According to a KPMG survey, 61% of respondents expect a flat or lower figure for new funds in the region. It is the first time since at least 2004 that the expectation for the region is not for significantly higher amounts. Last year was a banner year for LatAm-dedicated money, with GP Investments, Advent International, and Southern Cross all raising funds of at least several hundred million dollars each. Institutional investors, pension funds and European institutions are all expected to increase their exposure to LatAm PE in the coming year versus last year, while private investor contributions are seeing dropping off, says the survey.