UK-listed private equity firm 3i has scrapped plans to raise a fund targeting Brazil and halted investment in the country after admitting the macroeconomic conditions were “not as we had planned for”.
3i CFO Julia Wilson told reporters on a conference call that conditions had changed in the last 12 months, citing October 2012’s election results and currency volatility as factors.
AltAssets reported a month after that election that the firm was targeting $500m for a Brazil fund after highlighting the area as a key growth market.
It opened an office in Sao Paolo in April that year and has made two investments since, but Wilson said the firm would make no more and would cut the resources it has in the county.
The firm currently employs eight people in Brazil.
3i led a consortium in a BRL108m (£36.4m) investment in Brazilian glasses seller Óticas Carol in March last year, and paid about $55m for a minority stake in TV and broadband provider Blue Interactive in December 2011 to mark the firm’s debut in the Brazilian market.
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