Summary of Proposed Investment
Project Number
11618
Company Name
ADVENT LATIN AMERICAN PRIVATE EQUITY FUND II B LIMITED PARTNERSHIP
Date SPI Disclosed
May 20, 2002
Country
Latin America and the Caribbean Region
Industry
other
Projected Board Date
Jun 21, 2002
Status
Completed
Sector
Private Equity/Venture Cap Fund - Regional
Department
Equity Portfolio Management
Environmental Category
FI
Previous Events
Approved : Jun 28, 2002
Signed : Jun 28, 2002
Invested : Jul 12, 2002
Project Description
Project Description:
LAPEF II has been formed by Advent to achieve attractive investment returns through a portfolio of diversified companies in Latin America. The main investment focus will be on later stage businesses, with limited exposure to fast growing telecommunications and later round technology companies. Advent will add value through active investment management, majority share ownership positions, and board and executive committee participation.
Development impact:
Second tier companies in Latin America are affected by financing constraints and lack of access to best management practices. The fund will contribute to the economic development of the region by supporting the development of these companies with equity financing and managerial and strategic support. This will be achieved through the active involvement of Advent''s locally-based Latin American team of 15 investment professionals with extensive private equity and senior management experience, and through leveraging Advent''s global private equity and industry expertise as well as relationships with over 30 multinational corporations.
After having peaked in 1998, private equity fund raising for the Latin American region has dropped sharply and is now back to pre-1994 levels. The fund, using a disciplined and thorough investment approach, will help demonstrate that the private equity model can be successful in Latin America, attracting further private equity resources to the region. If private equity is successful, public equity markets are likely to become increasingly viable. In this respect, Advent''s first Latin American Private Equity fund, LAPEF I, was among the few funds in the region which managed to successfully exit an investment through an Initial Public Offering on a local stock exchange.
IFC role:
Over the past year, the international and regional economic environment has deteriorated decreasing investor confidence. IFC''s commitment to the fund will signal IFC''s support to private equity in Latin America at a time of increased investor anxiety. It will also help the fund reach a critical economic size and maximize its impact and demonstration effect. IFC will be involved in strategic planning and governance issues for the fund. Among other things, IFC will be member of the fund''s Advisory Board, which will deal with governance issues at the fund level. Finally IFC will play an important role in the definition of corporate governance and environmental standards at the investee company level, contributing to the sustainability of the fund''s investments.
LAPEF II has been formed by Advent to achieve attractive investment returns through a portfolio of diversified companies in Latin America. The main investment focus will be on later stage businesses, with limited exposure to fast growing telecommunications and later round technology companies. Advent will add value through active investment management, majority share ownership positions, and board and executive committee participation.
Development impact:
Second tier companies in Latin America are affected by financing constraints and lack of access to best management practices. The fund will contribute to the economic development of the region by supporting the development of these companies with equity financing and managerial and strategic support. This will be achieved through the active involvement of Advent''s locally-based Latin American team of 15 investment professionals with extensive private equity and senior management experience, and through leveraging Advent''s global private equity and industry expertise as well as relationships with over 30 multinational corporations.
After having peaked in 1998, private equity fund raising for the Latin American region has dropped sharply and is now back to pre-1994 levels. The fund, using a disciplined and thorough investment approach, will help demonstrate that the private equity model can be successful in Latin America, attracting further private equity resources to the region. If private equity is successful, public equity markets are likely to become increasingly viable. In this respect, Advent''s first Latin American Private Equity fund, LAPEF I, was among the few funds in the region which managed to successfully exit an investment through an Initial Public Offering on a local stock exchange.
IFC role:
Over the past year, the international and regional economic environment has deteriorated decreasing investor confidence. IFC''s commitment to the fund will signal IFC''s support to private equity in Latin America at a time of increased investor anxiety. It will also help the fund reach a critical economic size and maximize its impact and demonstration effect. IFC will be involved in strategic planning and governance issues for the fund. Among other things, IFC will be member of the fund''s Advisory Board, which will deal with governance issues at the fund level. Finally IFC will play an important role in the definition of corporate governance and environmental standards at the investee company level, contributing to the sustainability of the fund''s investments.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
William P. Balz
Advent International Corporation
75 State Street
Boston, MA 02109
Phone: 617 951 9788
Fax: 617 951 0736
E-mail: wbalz@adventinternational.com
Advent International Corporation
75 State Street
Boston, MA 02109
Phone: 617 951 9788
Fax: 617 951 0736
E-mail: wbalz@adventinternational.com