The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Chile: Larrain Vial taps local interest

Growing interest from Chilean institutions; Prospects more attractive than in Brazil

Larrain Vial, a Chilean brokerage that manages about $14 billion, has raised more than $250 million for a global private equity fund in partnership with Blackstone Group.

Larrain Vial says it expects to double that amount shortly, tapping into rising private equity interest from Chilean institutional investors, especially private pension funds (known as AFPs).

AFPs, which have more than $100 billion in assets under management, invest a small proportion of their assets in private equity but that is expected to grow. Larrain Vial, which also operates in Peru, Colombia and Mexico, will probably begin as a broker dealer in the US during the next few months.

"It is very important that Chile’s private equity industry develops," says Ricardo Rodriguez, president of BBVA Provida, one of Chile’s biggest AFPs, with $36 billion of assets under management. "Currently, we invest less than 1% of our assets in private equity but we expect that will grow in the future. We want to support the local industry but we will also invest in international private equity groups if they present the right opportunities for our clients. It is a good way for us to diversify our allocation."

Insufficient experience

Chilean AFPs invested large sums in private equity in the country in the early 1990s but many of these investments did not perform well because the local private equity groups had insufficient experience.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree