GP Investments Raise $1.3 Billion For Latin Investment

by Stewart Douglas

Story link: GP Investments Raise $1.3 Billion For Latin Investment

Brazil based capital firm GP Investments has today announced it has raised a fund of over $1.3 billion in order to back immediate private equity ventures, highlighting the ongoing strength of equity markets in South America and Latin regions.

The company, dually listed in Brazil and Luxembourg, announced it had garnered the fund from independent investors, contributing to its total overall raised capital of $3 billion in its fourteen year history.

Analysts have highlighted a growing trend towards capital markets that had traditionally been labelled as less attractive in light of current market conditions.  As a result Latin American markets have experienced significant growth in investor confidence, as have certain markets in sub-continental Asia and Africa.

In terms of regional equity buying, GP Investments are major players, accounting for most of the largest buy-outs charted over the last few years.  As such, its recent capital fund looks likely to present it with an increasing investment opportunity in the region to continue to provide its own investors with significant return on their money over the period.

The $1.3 billion fund is roughly equal to the company’s market capitalisation, with its current share price high on the back of a consistent 14% return over the last three years of trade after it finally broke into positive figures.  The company, owned substantially by its staff in common who hold a 25% stake, is thought to have footed around one third of the investment in the present fund, with the remainder attracted from outside sources.

Among some of the more notable projects dealt with by GPI over the last few years were the acquisition of the regional land drilling division of Pride International for $1 billion, as well as the transition of the company’s E&P services arm.