Brazil Surpasses China as Top Destination For Private Equity Investment

Brazil has surpassed China as the largest destination for private equity investments in emerging markets over the next year, according to a survey by the Emerging Markets Private Equity Association (EMPEA), along with Coller Capital Emerging Markets Private Equity.

The same survey showed that emerging markets will capture a bigger slice of the investments from private equity investors, as some partners aggressively seek exposure to high growth markets such as India, China and Brazil.

"Brazil is perceived as having little or no political risk," said Sarah Alexander, chief executive and president of EMPEA. "And it has a strong economic growth that is leading to a significant increase in the middle class,".

Only 3% of private equity investors have cited political risk as a factor that could deter investment in Brazil, compared to 24% from 11% to China and India.

Private equity firms have increased investments in Brazil in recent years, such as Apax Partners, which bought a 54% stake in Brazilian company Tivit technology for $ 1 billion. And last week the London-based firm 3i Group hired Marcelo Di Lorenzo to head the new office and team in Brazil, where it already has investments but it does not have a base.

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