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Latin American private equity and venture capital fundraising, investment, and exits increased year-on-year in 1H 2015, according to new data from the Latin American Private Equity & Venture Capital Association (LAVCA). Fundraising increased 21 percent with firms raising an aggregate US$4.27 billion. Investments were up 39 percent with US$3.58 billion being deployed, and exits generated US$1.74 billion in proceeds, an 8 percent increase compared to 1H 2014.

Fundraising also seems to be bouncing back even over historic peaks. The first half of 2015 was the strongest first semester for fundraising since 2011 when US$4.9 billion was raised.

Breaking with the all Brazil all the time narrative that comes out of the LatAm - pan-regional vehicles represented 35 percent of the funds raised in the first half of this year, amounting to some US$1.48 billion. This was an increase of more than three times over the same capital raising period last year. Still, LAVCA projects that fundraising will slow and year-end totals will fall short of the record set in 2014 as managers concentrate on deploying capital.

“Concerns over the slowdown in growth or the need for ongoing structural reforms appear to be outweighed by the opportunity to invest dollars in funds that will make investments in heavily depreciated local currencies,” said Cate Ambrose, President & Executive Director, LAVCA.

The hotspots of Brazil, Mexico and the Andean region all saw increases in investment activity in 1H 2015. Brazil captured US$2.28 billion through 69 transactions, - beating the first half of 2014 which saw 50 deals amounting to US$1.89 billion. Capital invested in Mexico surged to US$978 million, up from US$403 million last year. The number of deals also increased to 27 from 15. In the first half of the year, the Andean region received US$304 million, compared to the US$265 million it captured in 2014.

GPs in the region are primarily investing in logistics and energy-related infrastructure, as the local demand for those services is strong. Capital raised by private equity infrastructure funds targeting these sectors represented almost 50 percent of the fundraising totals for the region. Similarly, investments in energy, oil & gas, and logistics in Brazil and Mexico dominated among large-cap transactions (ticket sizes over US$100 million).

Venture capital and early stage activity continued to gain momentum in the first half of 2015. The region overall deployed US$264 million through 71 deals as compared to the US$173 million invested in 47 transactions during the first semester of 2014. Brazil is the most mature venture market in the region and managers there deployed 81 percent (US$213 million) of the total investment dollars. Mexico and Argentina saw increased early stage investments as compared to the same period in 2014.

During LAVCA Week held in New York at the end of September, venture investments in the region backed by brand names like Priceline.com and VistaPrint were key focal points for attendees. While investors agreed it’s a little too early yet to see realizations, they also said they are seeing robust opportunities for investment on the ground.

Traditional private equity exits in the first half of this year were the highest since the first half of 2011. Strategic sales were the most common exit route during the period, and secondary market offerings and sales to financial buyers were the second and third preferred exit methods.