Data & Intelligence

Building Vital Partnerships: How do private equity investors create value?

Download the full study here.

A joint study of private equity exits in Latin America by EMPEA and Ernst & Young

Our second annual study, looking at how PE investors create value in Latin American businesses, extends our research into PE’s transformational role in Latin America’s continued economic development. The results of this year’s study confirm our initial findings — PE firms are focused on growth and hands-on partnerships with entrepreneurs to transform companies into market leaders. Through extensive involvement, PE investors work with the entrepreneurs they back to identify and develop new products, expand geographically and exit profitably.

Our study looks at PE exits in Latin America between 2007 and 2012, a period of economic stability and prosperity unrivaled in a generation. In less than a decade, Brazil has surpassed the UK, Italy and Canada to become the sixth-largest economy in the world. In addition to Brazil, neighboring countries such as Colombia, Peru and Mexico have also come into the spotlight as the current rising stars of the region. This year, we’re seeing more PE interest in the region beyond Brazil.

Colombia and Peru have consolidated economic reforms to become hubs for foreign direct investment. And Mexico, long hindered by market concentration and low productivity in key sectors, is now pursuing serious structural reforms to bolster competition.

Latin America has continued to outpace developed countries in economic growth, with region-wide GDP growth averages hovering above 4%, despite a difficult commodity export market and continued challenges in generating competitive industries. To compensate for the drop in external demand, many economies in the region powered ahead, buoyed by the rapid growth of the region’s middle class and the local consumption effects of nearly 50 million people who have risen out of poverty in the last decade. This has had profound implications on certain sectors in countries where these trends are most prevalent, particularly in Brazil, Colombia, Mexico and Peru.

As a Founding Member Firm of EMPEA , I am proud of what the organization achieved. I look forward to playing an active role on the Board of Directors as we enter our next phase.

Drew Guff | Managing Director and Founding Partner, Siguler Guff & Company

I’m honored to join fellow industry pioneers in the leadership of an unparalleled network, filled with first movers, shaping the future of industries and communities.

Dr. Andrew Kuper | Founder and CEO, LeapFrog Investments

EMPEA's market and industry intelligence opens doors to new sources of capital.  I look forward to the future success of EMPEA and its members

Torbjorn Caesar | Senior Partner, Actis

While there are certainly challenges for the industry, the opportunities abound in our target markets and globally, making a global association like EMPEA more relevant than ever.

Drew Guff | Managing Director & Founding Partner, Siguler Guff & Company

The developed markets have no equivalent to the role EMPEA is playing as a convener and source of trusted information in the emerging markets.

David Rubenstein | Co-Founder and Managing Director, The Carlyle Group