Latin America Data Insight (Q3 2018)


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Fundraising for Latin America is on track to reach its highest annual total since 2015, with fund managers raising US$4.3 billion in Q1-Q3 2018. In contrast to previous years, private equity strategies accounted for a minority of this total, as in-frastructure and private credit funds attracted US$1.7 billion and US$1.5 billion in commitments, respectively. Changes in fundraising patterns have also taken place in Mexico: in the first three quarters of 2018, the US$1.5 billion raised via four CERPI listings was more than double the amount raised via CKD listings, which have been the primary vehicle for local fundraising in Mexico over the last decade. This surge in CERPI listings followed regulatory reforms in January 2018 that granted greater flexibility in their geographic and strategic mandates, including allowing Mexican pensions to commit to funds investing primarily outside of Mexico. Yet with local pension funds reassessing their capital allocations, the poten-tial outflow of capital may have an outsized effect on the private capital industry in Mexico, which local LPs have been instrumental in developing. With more CERPIs in the pipeline, recent successful exits like the strategic sale of e-commerce retailer Linio will serve as crucial proof of the returns to be achieved in local markets.