Advent plans first close on LatAm fund with $2 bln target

Firm: Advent International

Fund: Advent Latin American Private Equity Fund VI

Target: $2 billion, $2.1 billion hard cap

Amount raised: Undisclosed

Advent Latin American Private Equity Fund VI is targeting $2 billion with a $2.1 billion hard cap for control buyouts in upper middle-market companies in Latin America, with a primary focus on deals in Brazil, Mexico and Colombia, according to San Francisco documents.

Buyouts affiliate peHUB reported in August that Advent had retooled its Latin American team around Managing Partner Juan Carlos Torres and seven other executives after Ernest Bachrach, who had led the team alongside Torres, stepped into more of an advisory role. Torres plans on transitioning into a similar role with the firm in late 2015, according to a Cambridge Associates memo provided by San Francisco.

“As special partners, Bachrach and Torres will support Advent’s programs part-time with ongoing involvement in portfolio companies and deal activity,” the memo stated. “We view the succession plan positively as it provides an opportunity for the more junior, yet experienced partners to step up within the organization.”

Managing Partners Patrice Etlin and Juan Pablo Zucchini are listed as key men on Fund VI, as are Managing Directors Santiago Castillo, Mario Malta, Mauricio Salgar and Luis Solórzano. The investment period will be suspended if at least three of the key persons “cease to devote substantially all of their business time to the Fund,” according to the memo.

The general partner plans to commit at least $35 million to Fund VI, with an option to increase their commitment over the course of the investment period. Advent is charging investors a 2 percent management fee, which will be offset by any transaction fees. “Operating partners, industry advisors, and consultant fees shall not offset the management fee,” according to the Cambridge memo.

It is unclear how much money Advent has raised for Fund VI to date.

”U.S. securities laws prohibit us from commenting on fundraising activity,” the firm said in a statement. 

In addition to its commitment to Advent, San Francisco also committed up to $50 million to Centerbridge Partners’ third fund, which is targeting $5.75 billion with a $6 billion hard cap for investments in distressed deals and buyouts. That fund is expected to hold a final close on Oct. 24, according to limited partner memos obtained by Buyouts.

Centerbridge declined to comment on fundraising.

San Francisco Employees’ Retirement System had a $16.9 billion investment portfolio as of June 30, 2013, according to its most recent annual report. The retirement system had a 12.2 percent allocation to buyouts, venture capital and special situations as of the same date.