Key Takeaways
- • The 16th Private Equity Latin America Forum, held in São Paulo on December 8-9 and sponsored by Kroll, brought together global and regional investors, fund managers and development finance institutions to discuss the region's evolving private equity landscape.
- • Private equity fundraising in Latin America has risen to over 25% in the past two years, with Brazil, Mexico and Colombia accounting for roughly 70% of deal volume and cross-border transactions up more than 40% year-over-year.
- • Infrastructure and energy, including renewables, account for nearly one-third of private equity allocations in the region, while private credit assets in Latin America total USD 25 billion with projections of USD 60–70 billion by 2030.
- • Liquidity remains constrained by limited IPO opportunities and growing exit backlogs, pushing managers toward trade sales, secondary buyouts, continuation funds and NPL strategies.
- • Forum speakers stressed that financial engineering is no longer sufficient; operational data, sector specialization and early exit and governance planning are now essential to value creation.
Summary
The 16th Private Equity Latin America Forum, held in São Paulo on December 8-9, convened global and regional investors, fund managers, development finance institutions and industry experts to examine the region's private equity and institutional capital landscape. According to the event summary published by Kroll, which sponsored the Forum, the sessions featured panel discussions on emerging trends, sector opportunities, regulatory changes and innovative investment strategies. A keynote moderated by Alexandre Pierantoni, Managing Director and Head of Latin America and Brazil Corporate Finance at Kroll, featured Luis Felipe Cruz, Partner and Co-CEO of Private Equity Buyout at Pátria Investments, and Lars Krogsgaard, Chief Investment Officer at Impact Fund Denmark. The panelists addressed regional private equity strategies, the growing role of impact investing and the influence of global best practices on local deal-making.
Kroll's summary characterizes the regional private equity sector as resilient, with fundraising up to over 25% in the past two years. Brazil, Mexico and Colombia account for roughly 70% of deal volume, and cross-border transactions have risen more than 40% year-over-year. Infrastructure, energy (including renewables), healthcare, consumer and technology were identified as the primary deal sectors, with infrastructure and energy accounting for nearly one-third of allocations. Real estate and logistics remain attractive, and digital transformation is creating opportunities in fintech, health tech and ag tech. Political and regulatory developments, including pension reforms, tax adjustments and foreign exchange volatility, were cited as critical to investment strategy. Recent reforms in Chile, Colombia and Mexico have increased asset liquidity, though persistent regulatory uncertainty requires scenario planning and active engagement with local authorities.
On private credit, the Forum noted global assets under management of USD 3 trillion and Latin American assets of USD 25 billion, with projections of USD 60–70 billion by 2030. Growth is attributed to bank retrenchment, infrastructure needs and mid-market consolidation. Blended finance, which combines concessional and commercial capital, is increasingly used to de-risk projects and attract institutional investors. AI adoption is rising across the private equity lifecycle in analytics, due diligence and scenario planning, though the summary warns that excessive reliance and insufficient staff training create risk.
Exit conditions were described as constrained, with limited IPO activity and growing exit backlogs. Alternative routes, including trade sales, secondary buyouts, continuation funds and non-performing loans, are gaining importance, and secondary markets and private credit are supporting liquidity. On value creation, the Forum emphasized that operational data, sector specialization and governance tailored to founder- and family-owned businesses are essential, and that early alignment on exit strategies and governance transitions is crucial in the mid-market segment.
Kroll's summary characterizes the regional private equity sector as resilient, with fundraising up to over 25% in the past two years. Brazil, Mexico and Colombia account for roughly 70% of deal volume, and cross-border transactions have risen more than 40% year-over-year. Infrastructure, energy (including renewables), healthcare, consumer and technology were identified as the primary deal sectors, with infrastructure and energy accounting for nearly one-third of allocations. Real estate and logistics remain attractive, and digital transformation is creating opportunities in fintech, health tech and ag tech. Political and regulatory developments, including pension reforms, tax adjustments and foreign exchange volatility, were cited as critical to investment strategy. Recent reforms in Chile, Colombia and Mexico have increased asset liquidity, though persistent regulatory uncertainty requires scenario planning and active engagement with local authorities.
On private credit, the Forum noted global assets under management of USD 3 trillion and Latin American assets of USD 25 billion, with projections of USD 60–70 billion by 2030. Growth is attributed to bank retrenchment, infrastructure needs and mid-market consolidation. Blended finance, which combines concessional and commercial capital, is increasingly used to de-risk projects and attract institutional investors. AI adoption is rising across the private equity lifecycle in analytics, due diligence and scenario planning, though the summary warns that excessive reliance and insufficient staff training create risk.
Exit conditions were described as constrained, with limited IPO activity and growing exit backlogs. Alternative routes, including trade sales, secondary buyouts, continuation funds and non-performing loans, are gaining importance, and secondary markets and private credit are supporting liquidity. On value creation, the Forum emphasized that operational data, sector specialization and governance tailored to founder- and family-owned businesses are essential, and that early alignment on exit strategies and governance transitions is crucial in the mid-market segment.
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