News

FMO backed report gives insight in Latin American PE/VC market

On the 12th of May LAVCA (the Latin American Venture Capital Association) presented the 2009 LAVCA Industry Report highlighting the findings of the first regional survey of private capital firms investing in Latin America. The report shows that, despite a slowdown in 2008 investment activity due to economic and market uncertainty, fund managers predict that 2009 will be one of the best years for investments in several cycles. At the same time, over 80% of respondents to an investor opinion survey indicated that they plan to maintain or increase their  investments over the next 12 months.

Brazil, Mexico, Colombia, Chile and Peru have created attractive opportunities for PE and VC firms, at the same time that local pension funds have become an important source of capital for fund managers in Brazil, Colombia and Peru specifically.

The report includes an analysis of investments by market and sector, which reveals a concentration of deals in housing, healthcare, retail, education and other sectors driven by the needs of an expanding middle-class population.

The report was in part funded by FMO’s capacity development program. FMO backed this project because comprehensive and unbiased market information will stimulate the development of a transparent PE/VC market in Latin America.. The LAVCA report will contribute to a culture of transparency and accountability as part of the professionalization of PE/VC in the region.

About FMO
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 4.2 billion, FMO is one of the largest bilateral private sector development banks worldwide. Thanks in part to its relationship with the Dutch government, FMO is able to take risks which commercial financiers are not - or not yet - prepared to take. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries. FMO is an active and often early investor in private equity funds. 

Press contact
Patrick Harms
Communications Officer a.i. (PR)
M: +31  642 054 041
E: phm@fmo.nl