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Back to blog September 09, 2019 No Comments Author: Andy Jones

Private Equity Investments in Latin America

Following our interview with Emmersion, we reviewed our database of private equity platform investments in Latin America over the past five years. The following sectors were the most prominent private equity investment sectors in Latin America:

Private Equity Investment Sectors in Latin America

Energy

Within the LatAm energy sector, about one-half were Oil & Gas and about one-quarter Renewable (solar/wind/thermal… but mostly solar). The remaining quarter were a mix of Energy Distribution, Energy Services and Pipelines.

Sample Transactions

December 2017Carlyle International Energy Partners invested in COG Energy (Bogota, Colombia).

COG Energy is a privately held E&P company focused on light-medium oil.

 

April 2018Actis acquired InterGen’s Mexican portfolio of businesses for a consolidated enterprise value of US$1.256 billion. The Mexico-focused platform was rebranded as Saavi Energia.

Saavi Energia is a portfolio of businesses including a 2,200 megawatts in operation with six combined-cycle gas turbine projects and a 155 megawatt wind project.

 

2018 Norfund invested in PRODERSSA (Valle, Honduras). KLP Norfund Investments provided 30% of the equity, with the remainder provided by Scatec Solar and local sponsor PEMSA.

The project consists of a 59MW, fixed tilt solar plant, in the municipality of Nacaome, in the Valle Department of Honduras.

 

Education

Perhaps more surprising is that education was a significant investment sector. Within education, there were investments in K-12 schools, private schools, post-secondary, universities, distance learning, workforce development and learning management software.

Sample Transactions

May 2017Linzor Capital Partners (LCP III Fund) invested in Universidad Insurgentes Holding S.A.P.I. de C.V.

Universidad Insurgentes Holding S.A.P.I. de C.V. is a Mexican university that serves 23 thousand students through a network of campuses in Mexico City, Toluca and León.

 

December 2017 – The Rise Fund, managed by TPG Growth, made a $20 million investment into Digital House.

DIGITAL HOUSE is a group of schools providing digital skills and technology education to students in Argentina, Brazil and Mexico.

 

May 2018Linzor Capital Partners (LCP III Fund) invested in Utel Universidad.

Utel Universidad is a pure online higher education university in Mexico, targeting the middle-income segment of the population.