Private equity in Latin America is on the rise, showing remarkable resilience even amid global economic uncertainties. However, after the peak experienced in 2021,
slowed down in 2022 and 2023. This decline was due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. Despite this slowdown, the interest in the region's private equity market has remained high. This sustained interest is driven by a combination of factors, including a
, robust economic reforms, and increasing integration into global markets.
While
Latin America's private equity market is smaller than those in North America, Europe, and Asia Pacific, it holds significant growth potential, particularly in the technology, consumer goods, and renewable energy sectors.
The most attractive countries in the region
Brazil, Mexico, and Colombia stand out as the most attractive markets in Latin America's private equity landscape. The regional giant -
Brazil - accounts for the vast majority of private equity activity in the region, thanks to its diverse economy and vibrant entrepreneurial ecosystem. Mexico follows closely, leveraging its strategic location between North and South America, its geographical proximity and
its close economic ties with the United States. Meanwhile, Colombia has been gaining attention for its political stability and
robust economic performance. These markets are magnets for international private equity firms eager to tap into the region's growth potential.
Opportunities and risks
Looking ahead, the outlook for private equity in Latin America appears promising. Despite challenges like political instability and economic volatility,
the growth potential of these markets remains strong. The region is expected to continue attracting investment, particularly in sectors aligned with global trends such as digital transformation, renewable energy, and sustainability. There are three additional aspects that drive the development of private equity in Latin America. Firstly, the countries in the region have a relatively
low penetration rate of private equity and venture capital activity. Secondly, the market has enjoyed increasing attention. And lastly,
private equity dry powder reaching unprecedented heights. These factors suggest that over the next few years, countries in Latin America could position themself as key destinations for private equity in the global investment landscape.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
