Tochigi Ontario Holdings has today said that Latin America is witnessing big buyout deals this year. Various private equity groups and venture capitalists have invested nearly $7.9 billion in multiple deals. The funds raised in the region are the highest in the past five years.
"Latin America witnessed a 21% increase in fund allocation in 2011. It is expected that the new bubble of investments will burst in either 2014 or early 2015 as the entities will be looking forward to spending the capital on expansion and operations," said Michael Walker, Director of Corporate Equities at Tochigi Ontario Holdings.
Patrice Etlin, chairman of Latin America Private Equity and Venture Capital Association (LAVCA), also marked that the next wave of the region's investment process will hit back in 2015.
In 2010 and 2011, private equity and venture capitalists invested $8.1 billion and $10.3 billion respectively in the Latin America region. The fundraising process in the region is completed in a defined format where companies look and search for transactions where they can invest their money at work.
According to Tochigi Ontario Holdings data, nearly 237 companies invested in consumer business ranging from restaurant to fitness in the region. The consumer and retail sector accounted for 27%, whereas 20% was invested in the energy sector. The rest of the investments were made in manufacturing, financial and other sectors.
Sell out the value of the investments were $3.8 billion from a total of 44 transactions. Brazil, Colombia, and Mexico were the top regions where fundraising projects were implemented. Brazil topped the list with 147 deals in 2012 that accounts for nearly $5.7 billion. As per the survey done by LAVCA, the consumer and retail sector will be booming in the coming years.
![]() |
| Tochigi Ontario Holdings says buyout groups target Latin America |
