US private equity firms pivoting investment focus towards Latin America, says Auxadi study

By: private equity wire

An overwhelming majority (91 per cent) of US private equity firms are planning to deploy capital in Latin America over the next five years, according to a new study, fuelled by attractive valuations and a growing appetite for cross-border deal flow as the global economy recovers from the Covid-19 pandemic.

The new study, ‘Recovery to Rediscovery: Capitalising on a Changed Private Equity Landscape’, was commissioned by Auxadi, a provider of accounting, tax and payroll services to private equity, real estate and multinationals, and was based on interviews with 100 senior-level private equity investors based in North America, the UK, and Continental Europe with average assets under management of EUR14.4 billion.

According to the report, the level of interest among US GPs in Latin America as an investment destination outstripped Asia Pacific (76 per cent), indicating that the trebling of deal flow in the region from 133 in 2010 to 400 in 20192 is set to accelerate sharply following a pandemic-induced lull during 2020.