Argentina: Managers prepare for private equity boom
Focus shifting from Brazil; Agribusiness a particular interest
Two Buenos Aires private equity managers, DLJ South American Partners and Pampa Capital, plan this year to raise funds of up to $600 million and $500 million, respectively, highlighting the growing international interest in private equity in Argentina.
DLJSAP, a firm established in December 2006 by Credit Suisse’s Alternative Investments business and a team of Latin America investment professionals led by Carlos Garcia and Marcelo Medeiros, raised a fund of $700 million between 2007 and 2008, including money from co-investors. It was dedicated to Latin America and $100 million has been invested in companies in Argentina or that have a strong presence in the country. The new fund will again have a Latin American focus and invest in businesses in Argentina.
"Argentina’s private equity industry is relatively small. There are only five players that have assets under management"
Carlos Garcia, DLJSAP
Founded in 2005, Pampa Capital invests in companies in the agribusiness value chain, primarily in Argentina and Brazil and selectively in Chile, Peru and Uruguay. During 2007, its Pampa Agribusiness Fund raised a total of $400 million.