Gávea closes $1.1 bln Brazil fund

  • Brazilian firm targeted $1 bln to $1.5 bln
  • Kentucky Teachers’, Swedish National Pension among LPs
  • Pátria, Advent held closes for LatAm funds in 2014

Limited partners rushed into several Brazil and Latin America-focused private equity funds in 2014. Advent International closed its sixth Latin America fund on $2.1 billion in November and Pátria Investimentos, a Blackstone Group-backed firm, closed on roughly $1.8 billion in July. The Carlyle Group is currently marketing a $452 million Brazilian fund as well.

Private equity fundraising in Latin America peaked in 2011, with $17.8 billion raised, according to an Ernst & Young report that cites Preqin data. That total fell to $8.1 billion in 2012 and $5.2 billion in 2013.

Gávea was widely reported to have been approaching a final close earlier this year. The firm sought between $1 billion and $1.5 billion for Gávea Investment Fund V, which counts Kentucky Teachers’ Retirement System, The Second Swedish National Pension Fund, AP Fonden 2 and The Endowment Master Fund among its investors, according to an April report from Private Equity International.

Gávea’s previous fund closed on $1.9 billion in 2011. Its 2008 vintage, a $1.2 billion vehicle, netted a 12 percent IRR and 1.59x multiple as of June 30, according to UTIMCO data cited by Bison.

J.P. Morgan Asset Management acquired a majority interest in Gávea in 2010. The firm has roughly $6.5 billion under management with offices in São Paulo and Rio de Janeiro.