16th Private Equity Latin America Forum: Key Insights and Strategic Guidance

The 16th Private Equity Latin America Forum, held in São Paulo on December 8-9, brought together global and regional investors, fund managers, development finance institutions and industry experts to discuss the evolving private equity and institutional capital landscape in Latin America. The event included high participation, panel discussions and candid dialogue on emerging trends, sector opportunities, regulatory changes and innovative investment strategies shaping the region.

Kroll sponsored the Forum. Alexandre Pierantoni, Managing Director and Head of Latin America and Brazil Corporate Finance, moderated a keynote session with Luis Felipe Cruz, Partner and Co-CEO of Private Equity Buyout at Pátria Investments and Lars Krogsgaard, Chief Investment Officer at Impact Fund Denmark. They discussed private equity strategies in Latin America, the increasing role of impact investing and the influence of global best practices on regional deal-making.

Kroll’s delegation included Valentina Abu Kessm Cerri, Head of Valuations Brazil, Cesar Gutierrez, Head of Investment Banking and Emanuel Batista, Americas Head of Business Development for Investigations, Diligence and Compliance.

 

Key Highlights

• Regional investment landscape: The private equity sector in Latin America remains resilient and dynamic, with fundraising rising to over 25% in the past two years. Brazil, Mexico and Colombia account for roughly 70% of deal volume, while cross-border transactions have increased by more than 40% year-over-year. Success increasingly depends on disciplined risk management and strong local expertise.
• Major sectors and opportunities: Infrastructure, energy (including renewables), healthcare, consumer and technology are the primary sectors for deal activity. Infrastructure and energy account for nearly one-third of private equity allocations, driven by public investment, regulatory developments and demand for digital and logistics assets. Real estate and logistics remain attractive, while digital transformation is creating new opportunities in fintech, health tech and ag tech.
• Regulatory and macroeconomic environment: Political and regulatory changes, including pension reforms, tax adjustments and foreign exchange volatility, play a critical role in investment strategy. Recent reforms in Chile, Colombia and Mexico have increased asset liquidity; however, persistent regulatory uncertainty requires scenario planning, patient capital and active engagement with local authorities.
• Value creation and operational excellence: Financial engineering and multiple expansion are no longer sufficient. Operational data, sector specialization and governance tailored to founder- and family-owned businesses are now essential. Early alignment on exit strategies and governance transitions is crucial to unlocking value in the mid-market segment.
• Private credit and blended finance: Private credit is expanding rapidly, with global assets under management at USD 3 trillion. In Latin America, assets total USD 25 billion (~USD 25 billion), with projections of USD 60–70 billion (~USD 60–70 billion) by 2030. This growth is driven by bank retrenchment, infrastructure needs and mid-market consolidation. Blended finance, which combines concessional and commercial capital, is increasingly used to de-risk projects and attract institutional investors.
• Technology and artificial intelligence (AI): AI adoption is rising throughout the private equity lifecycle, offering competitive advantages in analytics, due diligence and scenario planning. However, excessive reliance and insufficient staff training create risks. Successful firms use AI to enhance governance, decision-making and operations, especially in rapidly growing sectors like fintech and digital infrastructure.
• Exit strategies and liquidity: Liquidity is constrained due to limited IPO opportunities and growing exit backlogs. Alternative exit routes—such as trade sales, secondary buyouts, continuation funds and non-performing loans (NPL) are becoming more significant. Proactive, flexible exit planning is essential, and liquidity is supported by secondary markets and private credit.

 

Actionable Takeaways

• Apply rigorous risk management and leverage local expertise.
• Focus on operational alpha and sector specialization to achieve sustainable value creation.
• Use technology and AI strategically, maintaining robust oversight.
• Utilize private credit and blended finance to diversify funding sources.
• Plan exit strategies early and diversify liquidity options.
• Monitor regulatory developments and maintain adaptable governance and compliance frameworks.

 

Kroll’s Value: Assistance Overview

Kroll is uniquely positioned to support investors, fund managers, and businesses in Latin America’s private credit landscape. We offer:

• Independent valuation expertise: accurate, objective, and independent valuations to support investment decisions and regulatory compliance.
• Capital Solutions: Kroll constantly works with a wide range of clients across Latin America seeking financing to execute their growth strategies.
• Rigorous financial due diligence: comprehensive investigative services to assess risks, verify opportunities and ensure transactional integrity.
• Transaction‑focused integrity and investigative due diligence: independent assessment of the target and principals’ integrity and reputation, review of anti‑bribery and corruption programs, and analysis of country, industry, and cultural risks to support informed transaction decisions.
• Data-driven risk intelligence: advanced analytics and risk assessment tools tailored to local market dynamics and sector-specific challenges.
• Operational and governance advisory: guidance on operational improvements, governance transitions, and value creation strategies for founder- and family-owned enterprises.
• Regulatory and compliance support: expertise in managing complex regulatory environments, performing scenario planning, and proactively engaging with local authorities.

Partnering with Kroll allows investors to make informed decisions, optimize capital allocation and create sustainable value across the investment lifecycle in Latin America.