Funds of foreign risks buy Countrys companies
DCI
The return of foreign investors to Brazil has been cheering up managers of private equity funds. Foreign investors are already part of 58% of the investments made in this kind of fund. Another great reason for the increase of the private equity funds is the good opportunity of consolidation of the Brazilian market.
In the market of mergers and acquisitions this year in Brazil, the participation of the private equity funds corresponded to 17% in January, 26% in February and 34% in March, when it reached a historical record. In the year to date, the funds represented 24% of the operations.
The strong potential of growth of the Brazilian companies after the peak of the international financial crisis, with the need to raise funds in the stock market also becomes a great attraction for foreigners.
According to a survey made by Fundação Getúlio Vargas of São Paulo (FGV) on private equity and venture capital, on June, 30, last year, the funds industry had reached US$ 26.6 billion in capital committed with such operations. That represents nearly 480 invested companies. The public offering of companies, main and preferred form of realization of investments represents nearly 66% of the whole volume of funds with outflows from companies invested from 2004 to 2008.
The companies invested by PE&VC funds were responsible by nearly one third of all the transactions of opening of capital performed at the São Paulo Stock Exchange (Bovespa) in the last years. And the local pension funds were responsible for nearly 24% of the total of committed capital in Brazil.