US private equity firm Blackstone is preparing to buy a 40 per cent stake in Brazilian private equity firm Patria Investimentos for $200m, according to Reuters.
Blackstone, which is making the investment directly, rather than through a fund, is to finance the deal through a mix of cash and stock. The Brazilian firm is to hold the remaining 60 per cent
Patria Investimentos has had an agreement with Blackstone since 2004 to operate in Brazilian deals, but the duo have reportedly failed to invest jointly in any transactions since then.
Brazil makes up for half of Latin America’s GDP. Domestic firm Southern Cross recently raised a $1.7bn fund for investments across the region, narrowly beating out the $1.65bn fund Latin America fund closed by Advent International earlier this year, which was the largest Latin America-focused private equity fund ever raised at the time.
Copyright © 2010 AltAssets