Latin American Private Equity Activity (2006–2024): Exits, Buyouts, and Secondary Buyouts

This report delves into the evolution of PE activities in the region, highlighting key phases, notable rebounds, subsequent slowdowns, and current challenges.

Early Growth and Development (2006–2010)

• Emerging Interest: The mid-2000s marked a period of growing interest in Latin American markets, driven by economic liberalization, commodity booms, and a burgeoning middle class. PE firms began exploring opportunities, particularly in Brazil, Mexico, and Argentina.​

• Initial Challenges: Despite the interest, the region faced challenges such as political instability, regulatory hurdles, and a lack of mature exit avenues, which tempered the pace of investments.​

Expansion and Maturation (2011–2015)

• Increased Deal Activity: As local markets matured and regulatory environments improved, PE activities saw a notable uptick. Sectors like energy, consumer goods, and infrastructure attracted significant investments.​

• Exit Strategies Evolve: Firms began to diversify exit strategies, utilizing initial public offerings (IPOs) in local stock exchanges and strategic sales to both regional and international buyers.​

The 2021 Rebound: A Surge in Activity

• Global Liquidity Influx: In 2021, Latin American PE experienced a remarkable rebound, mirroring global trends. Ultra-low interest rates and abundant capital led to a surge in deal-making activities.​

• Record-Breaking Deals: The year witnessed unprecedented deal values and volumes, with investors eager to deploy capital in emerging markets offering higher growth potential.​

Slowdown in 2023 and 2024: Emerging Challenges

• Economic Headwinds: By 2023, the momentum began to wane. Rising interest rates, inflationary pressures, and global economic uncertainties contributed to a cautious investment climate.​

• Decline in Deal Activity: Both deal volumes and values saw a decline. For instance, in 2023, private equity-backed exits globally totaled $345 billion, a 44% decrease from the previous year, reflecting a broader trend affecting Latin America as well.

Current Risks and Challenges: Political Dynamics and Market Uncertainties

• Trade Policy Uncertainties: The return of Donald Trump to the U.S. presidency has introduced new uncertainties in trade policies affecting Latin America. The imposition of tariffs and a transactional approach to regional relationships have created apprehensions among investors. For example, Mexico faces economic challenges due to fluctuating tariff policies and internal reforms, leading to a potential recession. 

• Investor Sentiment: The inconsistent tariff policies have contributed to a slowdown in mergers and acquisitions, as well as initial public offerings, with major PE firms experiencing significant impacts on their operations. ​

• Regional Economic Pressures: Latin American countries are grappling with the economic pressures stemming from U.S. trade policies, leading to fears of new crises related to tariffs, investment instability, and reduced remittances. 

Private Equity Fundraising in Latin America (2018–2023): A Volatile Ride

Private equity fundraising in Latin America has experienced a steep and uneven trajectory over the past six years, underscoring the region’s sensitivity to both global capital markets and regional instability. In 2018, PE fundraising peaked at $5 billion—a high watermark that reflected strong investor interest, macroeconomic optimism, and promising demographic trends. However, this momentum quickly lost steam.

2021 saw a significant drop to just $1 billion, coinciding with global uncertainty around COVID-19 recovery and shifting investor preferences. The rebound in 2022, with fundraising rising to $3 billion, was a temporary resurgence fueled by low interest rates and excess liquidity across global markets—part of the broader post-pandemic capital deployment trend.

But the recovery was short-lived. In 2023, fundraising again fell sharply to just $1 billion (some sources report as low as $0.6 billion), marking a dramatic retreat. This decline mirrors broader trends in emerging markets where political risk, economic volatility, and rising interest rates have made capital allocation more cautious. For Latin America specifically, the challenges include currency instability, unpredictable regulatory regimes, and geopolitical uncertainty—including concerns about a potential second Trump presidency and its impact on U.S.-Latin America trade relations.

Key Takeaways:

• 2018 Peak: Strong capital flows, optimism, and macro tailwinds drove fundraising to $5B.

• 2021 Collapse: Investor caution and pandemic-driven uncertainty led to a dramatic fundraising drop.

• 2022 Rebound: Global liquidity and renewed interest brought a temporary lift to $3B.

• 2023 Decline: Fundraising fell back to $1B, reflecting macro headwinds, regional risks, and capital reallocation toward safer or more scalable markets.

The Outlook: While Latin America remains an attractive long-term play due to its untapped consumer base, natural resources, and infrastructure needs, PE fundraising will likely remain muted unless macro stability, investor confidence, and deal pipelines improve. GPs in the region must adapt by focusing on local partnerships, operational value creation, and strategic exits in order to weather this funding drought.

Major Private Equity Deals in Latin America: A Strategic Lens on Big Ticket Transactions

Large private equity deals in Latin America have historically served as a bellwether for broader investor sentiment, sectoral confidence, and regional economic resilience. While fundraising volumes and overall deal count can fluctuate with global capital markets and political shifts, landmark transactions tend to signal long-term conviction. These deals often involve cross-border syndicates, sovereign wealth funds, and global PE giants targeting assets with strong market positioning, growth potential, or critical infrastructure roles.

Over the past decade, big-ticket deals have clustered around key sectors such as:

• Healthcare and Insurance: Latin America’s growing middle class and underpenetrated healthcare systems have attracted global investors looking for scalable opportunities.

• Consumer & Tech: Rapid digital adoption has made companies like e-commerce platforms, digital banks, and delivery apps attractive buyout targets.

• Energy & Infrastructure: Given the region’s rich natural resources and infrastructure gaps, PE firms have continued to deploy capital into energy, logistics, and utilities.

• Financial Services: From legacy institutions to fintech, the financial sector remains a hotbed for strategic investment and consolidation plays.

These large-scale transactions are often driven by transformational theses: unlocking operational efficiencies, accessing untapped markets, or restructuring distressed but valuable assets. Even during downturns, marquee deals signal where smart money sees opportunity.

Spotlight: 2022–2023 Deal Flow and Regional Trends

In the most recent cycle (2022–2023), Latin America recorded a number of significant PE-backed transactions, despite macroeconomic headwinds and tightening capital availability. Notably:

• Brazil Dominates the Deal Table: 7 out of the 10 largest PE deals during this period involved Brazilian companies, reflecting the country’s outsized role in the regional investment landscape. From healthcare to digital platforms and agribusiness, Brazil continues to offer scale and sectoral depth.

• Chile Takes the Crown for Size: The largest PE deal in Latin America across 2022 and 2023 was the $4.3B investment in LATAM Airlines Group S.A. by a consortium including Oaktree Capital Management, Knighthead Capital Management, and Banco Santander. This distressed-to-recovery play underscores PE’s role in recapitalizing critical infrastructure post-COVID.

• Top Deals by Sector:

  • Insurance: Sul América S.A. ($2.4B) drew investment from Rede D'Or São Luiz, Carlyle Group, and GIC.

  • Tech & Delivery: iFood.com was acquired by Prosus for $2.0B, highlighting ongoing investor appetite for Latin America's digital economy.

  • Agribusiness: Minerva S.A. and partners backed a $1.5B acquisition of Marfrig Alimentos’ operations—a nod to Brazil’s global food production clout.

  • Sports & Media: The $1.0B investment by Mubadala Capital into the Brazilian Football League marked a bold bet on the commercialization of sports in the region.

What These Deals Reveal

• Global Appetite Remains: Despite volatility, global investors are still willing to write big checks in Latin America—especially when the target is strategic or distressed with turnaround potential.

• Brazil’s Anchor Role: Brazil continues to serve as the regional hub for large-scale PE deployment.

• Sector-Specific Conviction: Investors are showing focused conviction in healthcare, tech, aviation, and agribusiness—sectors seen as resilient or on the cusp of transformation.

As capital becomes more selective in 2024 and beyond, these deals serve as both a map of current investor priorities and a forecast of where future capital may flow.

The Big 3: Brazil, Mexico and Argentina

No analysis of Latin American private equity is complete without examining the region’s three economic heavyweights—Brazil, Mexico, and Argentina. As the largest economies with the biggest populations in Latin America, these countries form the cornerstone of the region’s investment landscape. Their sheer scale, diverse industries, and growing middle classes make them essential markets for private capital.

Brazil leads the pack with a well-diversified economy, deep capital markets, and a vibrant tech ecosystem centered in São Paulo. Mexico, with its strategic proximity to the U.S. and its integration into North American supply chains, has emerged as a hotspot for nearshoring, fintech, and manufacturing plays. Argentina, while often grappling with macroeconomic volatility, continues to surprise with its depth of innovation, particularly in software, biotech, and agriculture.

One often overlooked advantage across these markets is the strength of their academic institutions—especially in engineering and technical fields. Universities like the University of São Paulo, ITESM (Tecnológico de Monterrey), UNAM, and the University of Buenos Aires consistently rank among the best in Latin America and have become key talent pipelines for startups, scaleups, and global tech firms. This academic strength has helped foster highly skilled workforces and entrepreneurial cultures, fueling the next generation of innovators across sectors.

Of course, investing in the Big 3 comes with its challenges. Currency instability, inflation, regulatory shifts, and political risk—especially in Argentina—can test even the most seasoned investors. But despite the volatility, these countries remain dynamic, full of creativity, and home to some of the region’s most compelling opportunities.

For private equity, Brazil, Mexico, and Argentina represent a mix of scale, innovation, and resilience. High risk, yes—but also high reward.

Brazil’s private equity activity between 2006 and 2024 reflects a story of steady growth punctuated by volatility and a historic boom. Deal count grew steadily from 2006 through the mid-2010s, peaking in 2014 with over 100 transactions. The market reached its high-water mark in 2021, when deal value skyrocketed to $33 billion—more than double any previous year—driven by post-pandemic liquidity, favorable interest rates, and pent-up M&A demand. However, this surge was short-lived. By 2023, deal value had dropped to $7 billion and fell further to $4 billion in 2024, even as deal volume held relatively steady. The data shows that while investor interest remains resilient in terms of activity, macroeconomic factors—such as interest rate hikes, political uncertainty, and tighter global capital—have significantly impacted deal sizes. Brazil remains the anchor of Latin American private equity, but the recent dip underscores the need for more stable conditions to sustain high-value investments.

Secondly, Mexico’s private equity activity from 2006 to 2024 shows a market marked by bursts of strong capital inflow, but also significant volatility in deal values. While annual deal counts have gradually increased over the years—reaching a high point of nearly 50 deals in 2022—the value of those deals has fluctuated sharply. After a slow start in the late 2000s, the market gained momentum in the 2010s, hitting its first major spike in 2017 with $4.2 billion in deal value. This was followed by another record in 2019 at $5.2 billion, and again in 2022 at $5.4 billion—Mexico’s highest on record. These surges reflect moments of investor confidence tied to economic stability, a strong manufacturing base, and Mexico’s strategic integration into North American supply chains. However, dips in years like 2020 ($0.2B) and 2023 ($0.4B) point to persistent challenges: policy uncertainty, regulatory risk, and sensitivity to external shocks, including U.S. trade dynamics. Despite these swings, Mexico’s 2024 rebound to $1.4B suggests a gradual reawakening of deal activity, supported by nearshoring trends and an increasingly tech-savvy entrepreneurial ecosystem.

Finally, Argentina presents a unique case in Latin America's private equity landscape—marked by volatility, yet persistent entrepreneurial energy. From 2006 to 2024, the country’s PE activity has been sporadic, with deal values swinging dramatically from near zero to ~$1.3 billion, as seen in the 2021 peak. Deal count has generally remained low, rarely surpassing 15 transactions in a year, reflecting a cautious investor stance in a challenging macro environment. Argentina’s frequent economic crises, high inflation, currency instability, and unpredictable regulatory shifts have kept many global investors on the sidelines. Yet despite these hurdles, the country has produced world-class entrepreneurs, especially in tech, agribusiness, and biotech. The 2021 surge—paired with another notable year in 2017 ($0.8B)—demonstrates how, in moments of relative stability or opportunity, capital can flow quickly into high-potential ventures. As of 2024, activity remains muted with deal value at $0.4 billion, but Argentina continues to offer selective, high-upside plays for investors willing to navigate risk in exchange for innovation and resilience.

Big 3 PE Activity as % of the entire Region

Brazil has consistently captured the lion’s share of private equity activity in Latin America, regularly accounting for over half of the region’s total deal flow. Its dominance is rooted in its market scale, sector diversity, and relatively deeper capital markets, which provide a more stable and mature environment for private capital deployment. Brazil’s institutional ecosystem, combined with large domestic demand and a steady pipeline of investable companies, has made it the natural hub for PE in the region.

Mexico’s share, by contrast, has been notably volatile. In some years, it has approached or surpassed 20% of regional activity, particularly when macro conditions and cross-border trade dynamics aligned favorably. However, its contribution has fluctuated sharply, reflecting investor sensitivity to regulatory shifts, political changes, and broader U.S.-Mexico trade relations. While Mexico remains a key strategic market—especially with the rise of nearshoring—its private equity landscape is still susceptible to policy uncertainty.

Argentina continues to lag behind its peers. Despite having a strong pool of entrepreneurial talent and world-class universities, persistent macroeconomic instability has severely limited its attractiveness to investors. High inflation, elevated interest rates, repeated currency crises, and a lack of regulatory and legal predictability have constrained dealmaking and capital flows.

Conclusion

Private equity in Latin America remains a story of contrast—volatility and opportunity, risk and resilience. The region has demonstrated time and again that despite economic cycles and political instability, it is rich in talent, creativity, and long-term potential. Across Brazil, Mexico, and Argentina, investors can find world-class entrepreneurs, strong academic institutions—especially in engineering and technical fields—and a growing appetite for innovation and scale.

But private equity is not speculative capital. It doesn’t behave like short-term carry trade flows or hedge fund positions that enter and exit quickly in search of arbitrage. PE is patient, long-horizon capital that requires macroeconomic consistency, regulatory predictability, and legal certainty. It cannot thrive where conditions shift unpredictably or where long-term planning is undermined by instability. Argentina stands as a powerful example: a country with extraordinary human capital and entrepreneurial energy, but where repeated economic crises, high inflation, and weak institutional trust have kept global capital at bay.

Meanwhile, Brazil has shown that with relative institutional maturity and depth, even a volatile region can anchor private equity activity at scale. Mexico, though strategically important and increasingly attractive through nearshoring, must resolve regulatory and political fluctuations to realize its full potential.

The key takeaway for governments, regulators, and business leaders is clear: stability matters. Macroeconomic discipline, predictable policy, and juridical safety are not optional—they are prerequisites for sustained private equity investment. In a region full of potential, building long-term trust with investors is the path to unlocking the capital, innovation, and growth Latin America is more than capable of delivering.

Sources & References

Bain. (2024). Global Private Equity Report 2024. https://www.bain.cn/pdfs/202403121040275554.pdf 

Financial Times (2025). Mexico slides towards recession amid Trump turmoil. https://www.ft.com/content/e8488ad0-212e-445d-813a-eec2b6750216

S&P Global. (2021). 2022 Private Equity Survey: Spotlight on Latin America. https://www.spglobal.com/market-intelligence/en/news-insights/research/2022-private-equity-survey-spotlight-on-latin-america?cq_cmp=16907610211&cq_plac=&cq_net=g&cq_pos=&cq_plt=gp&utm_source=google&utm_medium=cpc&utm_campaign=Brand_DSA_Search_Google&utm_term=&utm_content=593203543595&_bt=593203543595&_bk=&_bm=&_bn=g&_bg=136523905438&gad_source=1&gclid=CjwKCAjw-qi_BhBxEiwAkxvbkA3JbA0tZj7Bsu6QNE9wlOpzBEKOqMw-we5pzOEO89Tp7e63O9IgURoCrugQAvD_BwE 

Statista. (2023). Largest private equity (PE) deals in Latin America in 2022 and 2023. https://www.statista.com/statistics/1475073/largest-private-equity-deals-latin-america/ 

Statista. (2023). Private equity (PE) fundraising in Latin America from 2018 to 2023. https://www.statista.com/statistics/1475089/private-equity-fundraising-latin-america-2018-2023/ 

McKinsey. (2025). Global Private Markets Report 2025: Private equity emerging from the fog. https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report 

White & Case. (2025). M&A Explorer. https://mergers.whitecase.com/#