Advent targets $2 bln for Latin America Fund VI in crowded market

The plan for Advent Latin American Private Equity Fund VI was a topic on the sidelines of the International Finance Corporation’s 16th Annual Global Private Equity Conference, where several sources mentioned the Advent fund to sister website peHUB.

Dana Gorman, a spokesperson for Advent, declined to comment other than to share a statement from the firm: “Pursuant to U.S. securities law, Advent is prohibited from commenting on fundraising matters.”

Advent’s fifth Latin America fund closed on $1.65 billion in 2010. Fund IV closed on $1.3 billion in 2007. Fund V was generating a 1.10x multiple as of Sept. 30, 2013, according to performance information from the California Public Employees’ Retirement System. Fund IV was producing a 1.6x multiple and a 14.5 percent internal rate of return as of Sept. 30, according to CalPERS.

Advent’s Latin American funds focus on control buyouts and expansion financings in companies across the region, focusing mainly on Brazil, Mexico and Argentina. The team targets high growth sectors such as financial services, airport services, business services, retail and consumer and education, according to Advent’s website.

Advent’s Latin America focus is headed up by a group of managing partners—Patrice Etlin, Juan Carlos Torres and Juan Pablo Zucchini. Ernest Bachrach, who in 1995 helped launch and then helped lead Advent’s Latin America program for 18 years, stepped back from daily operations in January into a special partner role, according to the firm’s website.

The resurgence of fundraising in Latin American, and particularly Brazil, was a prominent topic at the conference, which IFC runs in association with the Emerging Markets Private Equity Association. Several big firms are already out in market raising funds for Latin American investments, including Brazil, or are getting ready to launch.

One of those is Patria Investimentos, backed by The Blackstone Group, which is in market targeting $1.5 billion for Fund V.

Along with Advent and Patria, other firms back in market or expected to come back to market this year include JPMorgan-backed Gavea Investimentos, targeting between $1 billion and $1.5 billion, Vinci Partners and Grupo BTG Pactual, which is reportedly targeting $1.5 billion, according to Dow Jones.

Last year, fundraising in Latin America totaled $5.5 billion from 49 managers reporting 52 partial or final closings, according to data from the Latin American Private Equity and Venture Capital Association.

Chris Witkowsky is editor of peHUB.

Update: This story has been updated with details about Advent’s Latin American team.