With the steady slide of the Brazilian real against the U.S. dollar since 2011, coupled with private equity's unquenchable thirst for attractive investment opportunities, it is perhaps no surprise that we've seen elevated U.S. PE investment in Brazil over the past few years.
As you can see above, Brazilian businesses have indeed seen a jump in PE deals from U.S. firms, recording about 25 completed investments each full year since 2012, according to the PitchBook Platform, a 79% increase from the previous three years. Though deal count so far this year has dipped to 19, interest is far from waning.
The Carlyle Group, for example, announced this quarter that it had purchased a controlling interest in Tempo Participações, an auto, home and personal assistance services company, while also agreeing to participate in the acquisition of Uniasselvi, a provider of undergraduate and graduate education. Earlier this year, it was revealed that H.I.G. is looking to raise upward of $685 million for a Brazil/Latin America-focused fund.
And it's more than just a few key players. A couple dozen firms headquartered in the U.S. have at least one office based in Brazil, according to our platform, a group that grew last month when Jaguar Growth Partners opened a São Paulo location.
Looking closer at the data, it appears majority-stake investments have become increasingly common; buyouts of Brazilian companies by U.S. PE firms have risen from 18% of deals in 2013 to 39% so far in 2015. A potential contributing factor is the drop off in Brazilian IPOs, a trend that some analysts contend has led to companies becoming more willing to accept investor-friendly transaction terms.
Here is a chart of the top U.S. PE investors in Brazil since the start of 2010, along with their completed deal counts and sectors of focus:
PitchBook clients can click here to access the data on U.S. PE investment in Brazil. If you're interested in this data, or have another region in mind, contact us today to see how our platform can help your business.