latin america - economic overview · 2018. 3. 29. · latin america - economic overview inflation...
TRANSCRIPT
LATIN AMERICA - ECONOMIC OVERVIEW
INFLATION(Annual %)
EQUITY MARKET PERFORMANCE(5-year Local-Currency % Return)
PERU COLOMBIA BRAZIL CHILE MEXICO
-59 -47 -44 -28
8
High inflation and depreciating currencies
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PUBLIC MARKET INFORMATION (NYSE)
LATIN AMERICA: 114 NYSE listings; US$772.8b market value
ARGENTINA11 ADR
4 NON-ADRUS$32.7bMARKET CAP
26 DR
2 NON-DRUS$348.6bMARKET CAP
BRAZIL MEXICO12 DR US$154.8b
MARKET CAP
CHILE11 ADR US$72.9b
MARKET CAP
PERU2 ADR
2 NON-ADRUS$13.7bMARKET CAP
4 ADR US$34.9bMARKET CAP
COLOMBIA
CORPORATE DEBT
LatAmUS$178b debt issuedin 2014
US$165b in 2013MEXICOUS$60b Issued
BRAZILUS$56b Issued
$109b denominated in US dollars while $47b in local currencies
4.23.9
MEXICO
6.35.9
BRAZIL2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
4.04.2
COLOMBIA
9.0
7.8
URUGUAY
3.33.0
PERU
3.23.7
CHILELast Decade 2016-17 (f)
In 2015, Latin America witnessed its first region-wide economic slump since the global financial crisisMacroeconomic drivers include:
Decreasing commodity prices
Declining exports to China
2012 2013 2014 2015GDP GROWTH
(2016-17f)
GDP ($ billions) 607.7 622.1 544.7 585.6
(1.8%) (1.7%) (2.5%) (4.0%)Fiscal Bal. (% of GDP)0.7%ARGENTINA
GDP ($ billions) 2,459.5 2,464.7 2,417.2 1,772.6
(2.3%) (3.0%) (6.1%) (10.4%)Fiscal Bal. (% of GDP)(0.6%)BRAZIL
GDP ($ billions) 265.1 277.0 258.7 240.2
0.6% (0.6%) (1.6%) (2.2%)Fiscal Bal. (% of GDP)2.4%CHILE
GDP ($ billions) 369.6 380.0 377.9 293.2
(1.9%) (2.2%) (2.6%) (3.1%)Fiscal Bal. (% of GDP)3.1%COLOMBIA
3.1%GDP ($ billions) 1,186.6 1,261.8 1,297.9 1,144.3
(2.6%) (2.3%) (3.2%) (3.5%)Fiscal Bal. (% of GDP)MEXICO
4.0%GDP ($ billions) 192.8 202.1 202.9 192.1
2.3% 0.9% (0.3%) (2.1%)Fiscal Bal. (% of GDP)PERU
Target Company - LifeMiles BVFinancial Sponsor - Advent International Corp.Deal Value - US$343.7m
LATIN AMERICA - PRIVATE EQUITY LANDSCAPE
FUND RAISING
DEAL ACTIVITY
ABOUT TRESVISTATresVista Financial Services is the leading provider of high-end outsourced support for asset managers, investment banks, research firms, and corporates. TresVista delivers operational efficiencies and cost savings to its clients while providing them
with dedicated teams to support them across various functional activities. Services include investor relations, fund raising, deal sourcing, deal execution, valuation, research, financial modeling, portfolio management, marketing and legal support.
US$84.5b
US$4.7t35% Increase Over
2014 Across the Globe
30% Decrease In
2015 LatAm M&A activity
MID-CAP
US$2.2b
InformationTechnology
Consumer/Retail68DEALS
VENTURE CAP
US$594m
Transportation182DEALS
InformationTechnology
FinancialServices
LARGE-CAP
US$3.8b
Oil & Gas Healthcare Energy14DEALS
Biggest Deals
Investments
Target Company - Oi SaFinancial Sponsor - LetterOne HoldingsDeal Value - US$4b
Target Company - Rede D’Or Sao Luiz SAFinancial Sponsor - Carlyle Group LPDeal Value - US$592.9m
Target Company - General Electric Co.Financial Sponsor - Linzor Capital Partners LPDeal Value - US$1.1b
TRADE SALES
EXITS
55% 25%SECONDARY
BUYOUTS
No Private Equity exit through IPO
52 Companies
exited in 2015 with US$3.0b
Funds Raised in $billion
10.3
5.6
5.5
10.4
7.2
2011 2012 2013 2014 2015
6.5
7.9
8.9
7.9
6.5
0
50
100
150
200
250
300
350
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2011 2012 2013 2014 2015
Investments in $billion Number of Transactions
173
237 233
306 310
SOURCE: TresVista Financial Services; LAVCA 2016 Industry Data; Ernst and Young - PE Roundup Latin America-2016; IMF; Focus Economics; Scotiabank; NYSE.
BrazilDeals 149US$3,166m
MexicoDeals 88US$2,268m
PeruDeals 19US$378m
ChileDeals 14US$178m
ColombiaDeals 18US$415m
ArgentinaDeals 17US$41m
LARGEST FUNDS RAISED
P2BRASIL IIICLOSE SIZE
US$1,674.0m
Infrastructure Timber Consumer/Retail
Consumer/Retail
BTG PACTUAL BRAZIL TIMBERLAND FUND I
CLOSE SIZE
US$860.0m
LINZOR CAPITAL PARTNERS FUND III
CLOSE SIZE
US$621.0m
PÁTRIA BRAZIL REAL ESTATE FUND III
CLOSE SIZE
US$512.0m
Property Health care Diversified
AXXON BRAZIL PRIVATEEQUITY FUND III
CLOSE SIZE
US$400.0m
FONDO DE FONDOSMEXICO IICLOSE SIZE
US$349.0m
Education/Training
Industrial
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