Auxadi’s, chief executive officer, Victor Salamanca, and senior vice president, Raimundo Diaz, spoke with Private Equity Wire, to talk about the key findings in our latest US private equity report and understand why there’s a growing interest in US investment in to Latin America.
The article shares findings from our report ‘Recovery to Rediscovery: Capitalizing on a Changed Private Equity Landscape‘ and highlights that 70% of private equity firms plan to invest in LatAm in the next five years – ahead of Asia Pacific – while over nine out of ten North American-based GPs are set to commit capital to the region by 2026.
Raimundo shares the key factors driving US investors to invest in the region with US private equity firms looking at opportunities to buy at prices that are affordable and, despite the global pandemic, sectors like fintech and renewables have continued to be popular investment choices. He highlights that the opportunities of investing in solar farms or wind farms are an exciting prospect for private equity firms.
The article outlines the challenges for foreign GPs looking to invest in LatAm. Being made up of several countries, each with their own culture, local compliance and regulatory issues and differing political and social stability, can make it a difficult market for investors to enter.
Victor also gives his insight on why US investors are looking to LatAm. He comments that over the past few years there’s been an increase of multilatinas companies, who have expanded their operations across multiple LatAm countries. This has attracted the attention of private equity firms due to the proximity of the two markets.
Our report highlights that the region can expect increased opportunities on the horizon for private equity investment and the most active sectors at the moment are renewables and fintech companies.
You can read Victor and Raimundo’s full article on Private Equity Wire, here. First published: 28 July 2021.