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Advent closes $1.3bn fund for Latin America27/07/2007. Source: AltAssets. 
 Advent International has closed a new buy-out fund dedicated to investing in Latin America. Latin American Private Equity Fund IV closed on its hard cap of $1.3bn, making it the largest private equity fund ever raised for the region.
LAPEF IV exceeded its target capitalization by 30 per cent, the firm announced in a statement.
A total of 38 investors participated in the new fund, including public and corporate pension funds, funds of funds, banks, insurance companies, government institutions, endowments, foundations and family offices. The fund received strong support from existing limited partners, who committed roughly half the total capital. These institutions were joined by 26 new investors.
A total of 54 per cent of the capital was raised from North American investors, with 33 per cent coming from Europe and 13 per cent from the Middle East and Asia Pacific.
As its predecessor funds, LAPEF IV will acquire control positions in later stage, cash-generative businesses, primarily in Mexico, Brazil and Argentina. The fund will target service sectors including airport services, financial services and business
outsourcing, and other industries.
The typical equity investment will be $50-150m in companies with enterprise values between $50m and $750m.
LAPEF IV has announced one investment to date, the LBO of Corporativo Javer's housing business subsidiaries. The size of the deal was not disclosed but Advent said that, if completed, the transaction will be its largest ever in Latin America, eclipsing the $500m LBO of Brazilian duty free retailer Brasif last year.
Ernest Bachrach, chief executive of Advent Latin America, said, 'With the large flow of capital into the US, Europe and most recently Asia, investors are increasingly finding Latin America an interesting alternative, with fewer competing sources of capital and a more compelling risk-return profile.'
Advent has been active in Latin America since 1996. The firm has invested in 33 companies in the region with a combined enterprise value (currently/at exit) of $5.8bn.
The new fund brings Advent's total capital raised for the region to $2.2bn. LAPEF I raised $230m in 1996, LAPEF II raised $265m in 2002; and LAPEF III $375m in 2005.
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