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. Please see our Subscription Terms and Conditions.


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

Private equity: Southern Cross takes challenge

Southern Cross Group is making waves in Latin American private equity, standing out because of its aggressive and sometimes contentious strategy – it only invests in companies in which it has unchallenged control of management – which is bringing it high returns.

It can also boast a record of doubling the profits of its portfolio companies. In less than a decade, the fund has moved more than $500 million into assets ranging from retail to energy and persuaded pension funds to invest in the projects. Southern Cross’s focus on Chile, Latin America’s most developed nation, also marks a change with the past. In the 1990s, foreign and local private equity funds raised $20 billion to invest in Brazil, Mexico and Argentina but many international investors fled the region after Argentina’s debt default and Brazil’s devaluation of the real.

Groundbreaking

Its latest strategy is proving groundbreaking: buying companies left behind by retreating multinationals wanting to focus on their core US and European markets. After almost a year of negotiations, in March Southern Cross bought two large Chilean water companies from the UK’s Thames Water for about $400 million including debt. Last month, Southern Cross began construction of a 120MW power plant in central Chile after buying the site from Canada’s Nova Gas International. Southern Cross, which owns energy and retail assets in Argentina, is now aiming to expand into Mexico and Brazil, where its HotelDo tourism company has a presence.

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