CDP Capital International, a subsidiary of the Caisse de depot et placement du Quebec (CDP), has been busy this winter preparing for an active year in Latin America.
The international fund manager, which invests in funds and direct investments in companies in Latin America, Europe and Asia, most recently teamed up with Violy, Byorum & Partners (VB&P), a Latin American strategic advisory and investment banking firm.
Last month, CDP Capital International invested $10 million in VB&P Holdings LLC creating a partnership which will allow CDP Capital to invest up to 30% in a buyout fund and a venture capital fund that will be launched by VB&P-CDP Capital Management.
“We decided to go ahead with VB&P as a partner because of their knowledge and their leadership in their field,” said Lucie Freniere, a spokeswoman for CDP Capital. “And from that we believe that we will have a good knowledge of the market with them. It’s a partnership that will become really interesting for us.”
The launch date for those funds has not been decided yet, but Freniere said they would be invested in traditional industries and early-stage information technology companies.
The Montreal-based firm also plans to leverage VB&P’s Latin American relationships to source future investment opportunities to expand its already substantial presence in the region.
“This partnership with VB&P is of strategic importance to Capital International,” said Jean Lamothe, president of CDP Capital International in a statement. “Apart from recognized expertise and a well-established business network, the agreement will enable us to consolidate our financial resources in Latin America. In addition, our Quebec partners and portfolio companies interested in expanding into Latin America should be able to benefit from this network of business contacts.”
Among its recent investments is a $2.5 million investment last month in GSSLA Inc., the Latin American subsidiary of Generale de Services Sante NA Inc. (GSS), which operates hospitals and clinics in Venezuela and Chile. The CDP Capital investment will facilitate an increased stake for the company in GSSVI, a subsidiary that is owned by GSSLA and Health International Corp., a manager of health-care services in Venezuela. GSSLA also has plans to expand its reach into Argentina and Mexico in the near term. The investment from CDP Capital was financed through its investment subsidiary Acces Capital International.
“The World Bank has identified health care in Latin America as a sector suited for restructuring and development,” said Lemothe in a statement. “Our investment . . . will enable GSSLA to position itself competitively by forming strategic alliances with local partners to take advantage of management opportunities as they arise.”
CDP Capital, which has offices in Paris, Warsaw, Bangkok, Hong Kong, Seoul and Mexico, also invests in Latin America-focused funds such as the Brazil Private Equity Fund LP, Exxel Capital Partners V LP and Compass Capital Fund LP.