US private equity firm Carlyle has closed two funds collectively worth $1bn in equity to invest in growth and buy-out deals in Brazil and South America.
With $776m in commitments, the Carlyle South America Buyout Fund (SCABF) will invest across the region, with a focus on Brazil, while a BRL$360m ($225m) fund raised in partnership with Banco do Brasil will co-invest with the CSABF on deals in Brazil.
Carlyle South America head Fernando Borges said, “Our ability to raise double our original fund target demonstrates the significant opportunity of the South America market. Broad economic trends, including the rising middle class, make South America in general and Brazil in particular a desirable investment destination.”
Carlyle made its first investment in Brazil in January 2010, with the $250m buy-out of package holiday company CVC Brasil, acquiring healthcare services provider Qualicorp and lingerie maker Scalina later the same year.
The firm set up its South America team in 2008, with the office currently comprising nine investment professionals.
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