By Ben Miller
Sovereign wealth funds: Gearing up
The hope is that large strategic investors such as sovereign wealth funds will become an integral part of Latin America’s financial landscape. The reality, however, is more complex
Latin America's appeal to other regions eager to access its
resource wealth is hardly a secret. But so far, large
state-backed investments into the region's strategic sectors
have been limited and have often passed under the radar.
Today, there are signs sovereign wealth funds and other
large strategic investors are looking to step up their presence
in Latin America - not least through deals in the region's
often challenging public equity markets.
Mubadala Development Company's $2 billion purchase of 5.63%
of Brazil's EBX this March underscored a growing interest in
the region from Gulf states eager to diversify and secure
access to resources. The Abu Dhabi government investment
vehicle made an investment characteristic of large funds - an
infrastructure bet supporting a large, diversified well-known
player at the pre-IPO stage.
EBX, the holding company for Eike Batista's family of
companies, also used its...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.