Posts Tagged “Institutional Capital”

How does Latin America Compare With Other Emerging Markets In Terms Of Investment Opportunities?

November 26, 2020

An article by Antonia Henbest

‘Latin America is overshadowed by Emerging Asia – but now I think it’s becoming more prominent as Asia becomes expensive. It’s the next big thing.’

- European LP

The story of emerging market growth is both well documented and often remarked upon. In an attempt to maximise returns, many LPs and GPs have flocked to less developed markets and profited from the wealth of opportunities that stultified western markets can no longer provide. Most impressive has been the rise of Asia, which has seemingly witnessed a blossoming of local talent as well as the inevitable surge of larger firms setting up in the region. By comparison, LPs often remark that whilst there is no doubt of the opportunities available in Latin America, the number of GPs who are of sufficient quality to accept institutional capital remains surprisingly low. There are other barriers to investment; many US endowments are still scarred by awful experiences of getting their fingers burnt in the nineties and having less capital returned than was originally invested, and occasionally, none at all. But despite these often quoted examples, Latin American private equity is an increasingly attractive destination for international capital. The recent close of the heavily oversubscribed Southern Cross Fund III proves that for those able to demonstrate the ability to deliver real risk adjusted returns on investment; the market is now more lucrative than ever. The question that many LPs want answered now is not should we access this market, but how should we to access this region?

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