Advent International has agreed to take control of an 80% stake in Walmart Brazil, with The Wall Street Journal reporting the Boston-based buyout shop will pay $0 up front for the retailer's struggling Brazilian operations—although that total could jump as high as $250 million depending on the division's performance under Advent. In the meantime, Walmart expects a 2Q loss of roughly $4.5 billion as a result of the deal. The retail giant will retain the remaining 20% stake in the business.
South America has never been a hotbed for private equity activity for investors from the US and Europe. And that was especially true last year, when deal count for firms from those geographies dropped by 33% YoY on the continent, per the PitchBook Platform, falling from 84 to 56. The downward trend appears primed to continue this year, with just 23 deals completed so far, on pace to wind up short of last year's mark.