Advent International raises largest private equity fund dedicated to Latin America

BOSTON, Nov. 6, 2014 /PRNewswire/ -- Advent International, one of the largest and most experienced global private equity investors, today announced that it has received $2.1 billion in commitments for Advent Latin American Private Equity Fund VI ("LAPEF VI" or the "Fund"), reaching the Fund's hard cap after less than six months in the market. LAPEF VI is the largest private equity fund ever raised for Latin America.¹ Advent's previous fund dedicated to the region, LAPEF V, closed on $1.65 billion in 2010.

"We are pleased with the strong support we received from both existing and new investors," said Advent Managing Partner Patrice Etlin. "We believe the high level of demand reflects our leadership position in Latin America based on our strong 18-year track record and differentiated strategy for creating value in companies. Latin America continues to be an attractive region in which to invest. It is a large, growing market with an expanding middle class, opportunities for productivity enhancement, a high degree of family ownership and limited competition from other financial sponsors relative to the size of the markets."

Continuing the strategy of its predecessor funds, LAPEF VI will focus on control-oriented investments in later-stage companies throughout Latin America, investing mainly in Brazil, Colombia and Mexico. The Fund will target sectors where Advent has significant experience both regionally and globally, including business and financial services; healthcare; industrial and infrastructure; and retail, consumer and leisure.

"LAPEF VI underscores our longstanding commitment to investing in attractive opportunities in our target sectors throughout Latin America," said David Mussafer, Managing Partner and Co-Chairman of Advent's Executive Committee. "We believe our industry and local market expertise, combined with our global resources and operational approach to creating value, provides us with a distinct competitive advantage in the region. We are pleased investors continue to recognize this and we remain focused on exceeding their expectations."

Over 60 institutional investors participated in LAPEF VI, including public and corporate pension funds, endowments and foundations, funds of funds, sovereign wealth funds, family offices and other financial institutions. The majority of the capital came from limited partners in LAPEF V, with Advent admitting a select number of new strategic investors into the Fund as well. Approximately half the capital was raised from North American investors, one-quarter from European investors and the remainder from institutions in Latin America, the Middle East and Asia.

Advent's leadership position in Latin America

With the new Fund, Advent builds on its position as one of the leading private equity investors in Latin America. Since 1996, the firm has raised more than $6 billion for investment in the region from institutional investors globally. During the same period, it has invested in 46 companies and fully exited its positions in 33 of those businesses. With 40 investment professionals working from offices in Bogota, Mexico City and Sao Paulo, Advent has the largest dedicated private equity team in the region.

Advent's recent investments in Latin America include Ocensa, Colombia's largest crude oil pipeline; Dudalina, a leading Brazilian apparel manufacturer and retailer; InverCap, a leading Mexican mandatory pension fund manager; Cataratas do Iguacu,² the largest concessionaire and operator of services in national parks in Brazil; Alianza Fiduciaria, Colombia's largest independent trust and custody services provider and asset manager; and United Medical, a Brazilian specialty pharmaceutical company acquired by Advent portfolio company Biotoscana.

Recent exits include Dufry, a global travel retailer with operations in Latin America; Kroton Educacional, the largest private education company in Latin America and one of the largest worldwide; Atmosfera, the leading industrial laundry company in Brazil; and Milano, a leading retailer of affordable apparel in Mexico.

Advent's value creation approach

In Latin America, as in other regions, Advent employs a highly operational approach to investing. The LAPEF team partners with management to build long-term value in companies by accelerating revenue and earnings growth through operational improvements, strategic repositioning and market expansion, both domestically and internationally. Key to this approach is Advent's resource-intensive platform. Its large regional investment team is complemented by an in-house Portfolio Support Group and network of third-party Operating Partners and Industry Advisors, who work with Advent on a consulting basis to improve and grow the businesses in which it invests.

By applying these resources and expertise, Advent has helped Latin American businesses achieve significant growth. Companies in the LAPEF I to LAPEF V portfolios have increased revenue and earnings at a compound annual rate of 18% and 16%, respectively, under Advent's ownership.³ More than 80% of Advent's realized investment gains have come from earnings growth at its portfolio companies.⁴

In addition to LAPEF VI, Advent is investing its seventh global private equity fund, GPE VII, a $10.8 billion fund focused on buyouts in Europe, North America and certain other markets globally.

About Advent International

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. Since inception, the firm has invested in more than 290 companies in 39 countries and today has $34 billion in assets under management. With offices on four continents, Advent has established a globally integrated team of over 170 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments across five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology, media and telecom. After 30 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies. For more information, visit www.adventinternational.com.

This press release is directed only to financial journalists and must not be further distributed to any person. It is not an offer, or an invitation or inducement, to invest in any Advent International fund. No person may invest in any Advent International fund except according to the terms of the applicable fund documentation and applicable law.

¹  Source: Latin American Private Equity & Venture Capital Association (LAVCA)

²  Cataratas is a pending investment. Advent cannot ensure any pending investment will be completed.

³  As of Sept. 30, 2014. Includes LAPEF I through LAPEF V and excludes investments less than one year old. CAGR from date of entry to exit or 2014 estimated, calculated by taking a cost-weighted average of companies' individual U.S. dollar growth rates. Earliest entry year is 1996. Average entry year is 2003. Growth rates calculated from actual company data or forecasts. Analysis impacted by foreign exchange rate movements.

⁴  Discounted equity value bridge calculated from variance of EBITDA, multiple and net debt from acquisition to exit or Sept. 30, 2014, for each investment. Adjusted for dilution and realized proceeds. Calculation includes fully realized and substantially realized investments with more than 1x cost realized. Values of substantially realized investments are calculated in accordance with Advent International's Valuation Policy.

SOURCE Advent International

Related Links

http://www.adventinternational.com